To put that into perspective, the S&P 500 has already posted an almost 15% gain in 2020, the Dow Jones Industrial Average is headed for a 6% rise in the year-to-date, while the technology-heavy Nasdaq Composite Index is on track for a 43% gain in 2020.
Full Answer
What happened to the stock market in January?
January was the month that the U.S. stock market finally succumbed to the pullback that many had been forecasting throughout the latter half of 2021. The S&P 500 flirted with a market correction, falling at one point as much as 9.8% from the prior all-time high.
Can a mind reader predict the stock market in 2022?
Some say you need to be a mind reader to accurately predict which way the stock market is headed. So MarketWatch decided to ask actual mind readers-or mentalists, as they sometimes prefer to be called-to tell us what to expect in 2022. And as an added twist, we sought out a couple with financial backgrounds.
Could February be a good month for the stock market?
All this aside, Sandven says there’s reason to believe that the stock market could see a modest gain in February, although he expects stock prices will likely remain volatile. With about six weeks until the Fed convenes again, here’s what investors will be watching this month.
Are You having trouble predicting the stock market?
Of course, even financial professionals have their share of trouble making accurate market predictions. A recent Wall Street Journal story noted that about 85% of active U.S. stock funds were underperforming the S&P 500 in 2021, as of Nov. 30.
The Fed
The Federal Reserve Board, which sets interest rates and directs U.S. monetary policy, has nearly run out of tools to whip the economy back into shape.
The Vaccine
There’s been plenty of talk about a COVID vaccine and it now looks like at least two drug-makers are poised to introduce one by year’s end. Previous attempts have met regulatory stalemates or trial failure in early testing.
The Virus
COVID virus statistics were improving for several weeks in a row, but there have been recent surges in several U.S. states. If the pandemic hangs on, remote working is the norm, and business shutdowns continue through the end of 2020, watch for Wall Street to react in a very negative way. Before the virus hit, the economy was in excellent shape.
The Vehicle Loans
One of the first segments of the economy to suffer in times like the present is auto loans. Given a choice, most people would rather miss a few car payments than house payments. Since March, car loan defaults and repossessions have been at an all-time high.
The Election Chaos
As a group, major investors don’t like uncertainty and tend to wait things out. In this case, the upcoming U.S. presidential election marks an even of historic significance. It’s not only one of the most partisan battles in a half-century, but appears to be holding of a fresh inflow of funds to the economy.
The September Curse
September tends to be a down month for the stock market, which is just one reason so many careful investors bolster their portfolios with gold bullion during the final month of the third quarter. But the fact that all this bad news is peaking during September is not good.
The High
Trend-watchers don’t like the fact that share and index prices are at an all-time high. It can be so fun one might even consider stock market wall art to celebrate. If you already were in before the big run-up, you made out well.
The Fed
The Vaccine
- There’s been plenty of talk about a COVID vaccine and it now looks like at least two drug-makers are poised to introduce one by year’s end. Previous attempts have met regulatory stalemates or trial failure in early testing. If any of the current round of vaccines turns out to be a dud, investors could lose the last bit of confidence they have in a stock market that is already flying a bit too hi…
The Virus
- COVID virus statistics were improving for several weeks in a row, but there have been recent surges in several U.S. states. If the pandemic hangs on, remote workingis the norm, and business shutdowns continue through the end of 2020, watch for Wall Street to react in a very negative way. Before the virus hit, the economy was in excellent shape. It ...
The Vehicle Loans
- One of the first segments of the economy to suffer in times like the present is auto loans. Given a choice, most people would rather miss a few car payments than house payments. Since March, car loan defaults and repossessionshave been at an all-time high. An extended season of COVID-related financial negativity might be the last straw for an industry that is already as strapped as i…
The Election Chaos
- As a group, major investors don’t like uncertainty and tend to wait things out. In this case, the upcoming U.S. presidential election marks an even of historic significance. It’s not only one of the most partisan battles in a half-century, but appears to be holding of a fresh inflow of funds to the economy.
The September Curse
- September tends to be a down month for the stock market, which is just one reason so many careful investors bolster their portfolios with gold bullion during the final month of the third quarter. But the fact that all this bad news is peaking during September is not good. It’s like tripping down the stairs and breaking your leg when you already have a bad fever and a black ey…
The High
- Trend-watchers don’t like the fact that share and index prices are at an all-time high. It can be so fun one might even consider stock market wall art to celebrate. If you already were in before the big run-up, you made out well. But what happens from here on out? Is it possible for Wall Street to continue notching new highs through the current chaos and uncertainty? The bottom line is that …