It’s important to note that during that period, the stock market was being underpinned by unprecedented monetary stimulus from the Federal Reserve that made it extremely cheap to borrow money.
While corporate profit expansion certainly boosts share appreciation, the US stock market showed the ability to recover even when mired in a five-quarter contraction from 2015 to 2016.
It marks the third straight quarter of earnings growth for the S&P 500.
“If you’re a long-term investor, and fundamentals haven’t really changed to the negative, there’s no reason to panic,” said Sichel.
“But the underpinning of good, strong corporate earnings still makes stocks a good place to be — as long as you can put up with some increased volatility.”
as informed in
Investors’ bets on Wall Street calm just got crushed as stock market sells off
Popular bets on low volatility were pummeled on Wednesday, as the market endured its first big selloff of 2017 following a protracted period of calm on Wall Street.
A pair of ways to wager on a protracted period of calm in the markets got hammered, as the stock market suffered its worst daily decline in months.
The CBOE Volatility Index, or VIX—the index those funds are pegged to—is jumping the most in about eight months in the wake of Wall Street’s first major equity-market selloff in months.
That trading action occurred as the VIX, otherwise known as Wall Street’s fear gauge, closed at its lowest level since 1993 last week.
Investors have increasingly been piling into these antivolatility bets, represented by big inflows over the past weeks.
as informed in
GRAND RAPIDS, MICH. – The stock market plays a big role in the financial well-being of our country, and our own portfolios.
Over that kind of time frame, the “noise” of day-to-day news fades away and stock market gains are ultimately tied to a healthy and growing economy.
While the economy won’t grow in a smooth upward line – it will go through boom and bust cycles just like the stock market.
The stock market can seem completely unpredictable to the average observer.
WZZM 13 sat down with Laina Mills from Legacy Trust in Grand Rapids to talk about how the international economy plays a part in the stock market’s performance.