Financial advisor Todd Morgan has plenty of rich clients in Southern California who needed to hear a soothing word about the stock market’s wild gyrations last week.“This calls to mind my favorite saying, ‘The market will do whatever it has to do to prove the most people wrong,’” said Morgan, chairman of Bel Air Investment Advisors in Century City, which caters to high-worth customers.His point: Until this month, many investors had grown accustomed over the prior year to nearly optimum conditions in the stock market. Shares kept climbing to record levels, propelled by growing economies and corporate earnings worldwide, low inflation, subdued interest rates and, perhaps most important, relative calm in trading each day.The calm abruptly ended last week when the market tanked — with the Dow Jones industrial average plunging a record 1,175 points on Monday, after a 666-point drop the prior Friday — and then swung sharply up and down the rest of … [Read more...] about Why the stock market’s tranquil ascent abruptly turned into a roller-coaster ride
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The stock market is having a panic attack. The Dow is down almost 1,800 points (7 percent) in two days. Global markets fell sharply on Tuesday. CNBC has already dubbed it "selling hell." So what is going on? And how much should you worry? Let's unpack what you need to know if you are someone who invests in stocks and bonds for the long-term and mostly tries to forget about the daily turbulence. Wall Street was overdue for a "reality check." The Dow was up over 26 percent from January 2017 to January 2018. That's a massive jump in one year. Historically, the stock market has gained 8 percent, on average, in a year. We just experienced three times that amount. Investors were beginning to look around and question whether stocks really should be at such high levels. It's not a true correction yet. For all the alarming headlines, this isn't a true correction yet. A correction is defined as a 10 percent drop from the prior market peak. On Wall Street, it's the equivalent of giving … [Read more...] about Analysis: Why the stock market is selling off, explained
Monday’s Dow Jones drop of more than 1,000 points set investors worrying about the money they had put into the market, though experts do not expect Wall Street to turn sour soon. The major index had the biggest point loss in its history, though its recent months of rapid growth means that as a percentage total the dip was less than 5%. But leaders including those in the White House said that the fundamentals of the economy are strong, and experts agree that the phenomenon was more blip than Black Monday. It could be a correction for an overheated stock market While the Dow Jones industrial average is often used as a benchmark for the economy writ large, it is actually an amalgamation of only 30 different stocks including Apple, Walt Disney and McDonald’s. Those stocks have enjoyed sustained growth in recent years, regularly reaching record highs despite the relative chaos of the daily news cycle dominated by the Russia investigation and fears of conflict in North … [Read more...] about Here are reasons why the stock market should bounce back
The stock market is having a panic attack. The Dow is down almost 1,800 points (7 percent) in two days. CNBC has already dubbed it "selling hell."So what is going on? And how much should you worry? Let's unpack what you need to know if you are someone who invests in stocks and bonds for the long-term and mostly tries to forget about the daily turbulence.Wall Street was overdue for a "reality check."The Dow was up over 26 percent from January 2017 to January 2018. That's a massive jump in one year. Historically, the stock market has gained 8 percent, on average, in a year. We just experienced three times that amount. Investors were beginning to look around and question whether stocks really should be at such high levels.It's not a true correction yet.For all the alarming headlines, this isn't a true correction yet. A correction is defined as a 10 percent drop from the prior market peak. On Wall Street, it's the equivalent of giving someone a time out. It may seem hard to remember now, … [Read more...] about Why the stock market is selling off
Happy New Year, Wall Street — pop that Champagne cork because 2018 could be another great year for massive wealth creation. With rising 401(k)s expected to push average balances back into solid six figures — and US equity prices forecast to surge as much as 15 percent — more Americans are over the moon about the coming 12 months than there were in the previous year. “Americans are much more enthusiastic about their finances heading into 2018,” Mike Brown, a research analyst at LendEDU, told The Post. “Astronomical market growth is once again the catalyst for this excitement,” he added, “and one can also (credit) the tax cuts that will hopefully create more jobs, which will lead to more money in the pockets of Americans to pay down debt.” Those GOP tax cuts for corporations and individuals — a combined $1.5 trillion — are anticipated by analysts to ignite more domestic household consumption, and to lift capital … [Read more...] about Market analysts see booming stock growth in 2018
December 30, 2017—In 2017, for the first time, the Dow Jones industrial average broke through five 1000-point milestones: 20000 in January all the way to 24000 by November. Here are six questions to put the market boom in perspective.This is the third-strongest bull market since the crash of 1929, according to data from S&P Dow Jones Indices. As December ends, the Standard & Poor’s 500 index is up about 300 percent since the last bear market ended in 2009, behind only the boom of the 1990s (417 percent) and the rebound from the Great Depression in the 1930s (325 percent). Some analysts who date the 1990s boom differently argue that the current boom is a lot closer to taking the crown.After the market’s plunge during the Great Recession, stocks were bound to recover. What has kept the boom going for more than eight years – the second-longest on record, trailing only that 1990s rise – is strong earnings, among other things. US corporations notched a … [Read more...] about Stock market: Just how strong is it, heading into 2018?
Associated Press Published 8:20 pm, Friday, February 23, 2018 Increased dividends Albemarle .335 from .32 Ames National .23 from .22 Arbor Realty Trust .21 from .19 Recommended Video: Now Playing: The Dow plunged more than 1,000 points just before the final bell clanged Thursday. It represented a full market correction, defined as a 10 percent drop from its 52-week high. The S&P 500 also dropped 3.7 percent to a new low for the week. After a record run-up, stock markets have been newly volatile following a stronger-than-expected January jobs report. Some investors saw the fastest rate of wage increases in recent times as a signal that the Fed might hike interest rates higher and sought to lock in gains, leading to the sell-off. "It's really about people thinking the Fed is either behind the curve or actually has to be more aggressive," Stephanie Link, global asset management managing director at TIAA, told CNBC. "That fear, that unknown, is really what's … [Read more...] about Stock market activity this week
For politics, global relations and the climate, 2017 was a year of turmoil. Partisan divisions in Washington, escalating threats from North Korea and historic natural disasters left many Americans hoping they’ll be dealt a better hand in the coming year. But on Wall Street, everything came up aces. Seemingly indifferent to the chaos and belying many experts’ predictions, stock markets had their best year since 2013, with the closely watched Dow Jones industrial average ending 2017 up a staggering 25 percent. The steady rise has generated trillions in gains for investors as Wall Street banked on strong corporate profits, global economic strength and Republican efforts — led by President Trump — to cut business taxes and curb regulations. Many analysts say it is unlikely that 2018 will match this year’s performance, though there is little consensus on how and when a pullback might occur. A sell-off could be triggered by the shock of some unforeseen … [Read more...] about Stock markets wrap up best year since 2013 as investors shrug off bad news
Despite the big party on Wall Street this year, the stock market isn’t likely to suffer a hangover when stock trading resumes on Jan. 2.The week after New Year’s, history shows, has been kind to America’s biggest stocks. The Standard & Poor’s 500 stock index has in the past 50 years posted average gains of 0.61% in the trading week after the start of a new year. That return is better than the 0.14% gain for all weeks, according to data from Cincinnati-based Schaeffer’s Investment Research.Stocks have gone up 60% of the time in the first trading week of the year, vs. 56% for all weeks.“There seems to be some seasonality tailwinds over the next week,” Rocky White, an analyst at Schaeffer’s, noted.If history is repeated, the S&P 500, which in 2017 posted its best year of returns since 2013 with its 20% gain, will start off next year in the black.The full-year stock market outlook is also upbeat, based on year-end 2018 predictions of … [Read more...] about Start of the new year won’t end stock market party, history says
John Templeton, the late investing guru, once said bull markets in stocks “mature on optimism” before they eventually “die on euphoria.”Chalk up 2017 as another year of maturity for the current bull market -- on a record scale.Defying speculation 12 months ago that the years-long rally would be sorely tested during President Trump’s first year in office, the stock market has been riding a wave of continued optimism to repeatedly set fresh highs.Analysts give Trump some credit for the gains, mainly for pushing the tax-overhaul plan passed by Congress last week and reducing regulations. But market trackers give most of the credit to several other factors, including global economic growth, stronger corporate profits, continued low inflation and rising consumer confidence.“Looking at the economy and financial markets, it really doesn’t get much better than where we are right now,” Brad McMillan, chief investment officer at investment firm … [Read more...] about The stock market’s record-breaking run keeps going, but for how long?