For instance, the University of Michigan Consumer Sentiment Survey shows a generally positive trend lately, even though it is still down significantly since a year ago. Does this mean that the general consensus is that we feel that the market, and the economy, will be better off by then, and the concerns of today are in the past? Maybe so. ![]() The markets are generally forward looking, most participants saying the market looks 6-12 months ahead. These added costs will put a burden on the financials of companies and will directly affect consumers ability and willingness to make large purchases, which will slow down the economy. This will cause the costs of borrowing to go up across the board, companies and individuals alike. 50-1%, even after raising last month as well. Federal Reserve is meeting this week on July 26-27 and are generally expected to raise interest rates again, up another. After reporting an over 9% inflation rate this month, there is general concern that the higher prices, and the governments’ attempt to control it, will cause a recession.Īs shown, these are historically high numbers, so why would the market be rallying lately? Shouldn’t the risk of high prices, slowing economic growth, job cuts, and higher interest rates cause the values of companies to decline, therefore affecting their stocks price?Īdditionally, the U.S. and the government’s response to bring it down. The biggest driver for the market in recent months has been the record inflation numbers in the U.S. Only time will tell but there is data that would support both sides of the coin. So is this a Bear Market Rally, or the beginning of the turnaround that most investors have been hoping for over the past 7-8 months? ![]() The broad indexes are up, 4.65% for the Dow, 5.37% for the S&P 500, and 7.07% for the Nasdaq for the past month. After months of declining share prices, this month has seen a substantial rally. The market is up again this week, quite significantly at that, and is up over the past month as well. Welcome back to this series on the market and finding undervalued dividend growth stocks to research.
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