Can Stocks Continue to Rise?
It’s hard to believe, but 2020 is coming to an end. While the year will forever be characterized by pandemic, death, and political instability, it will also be remembered as a year that taught investors the importance of being active and nimble. Over the past 12 months, investors have experienced the death of a 10-year bull market, a vicious bear market, and then the birth of a new but divided bull market. The good news is that work suggests that we are in the early innings of this stock market recovery.
Regardless of how you navigated the stock market in 2020, investors want to know what’s next and whether the stock market can continue to rise after such a sharp recovery. The bottom line is that this is great news for our investors as today’s pessimists are tomorrow’s optimists and represent future buying power that our work suggests can push stock prices higher in 2021.
In this week’s stock market update, we will review the current stock market recovery and compare it to the 2009 recovery from a quantitative and qualitative standpoint to help gauge how much gas may be left in the tank after a sharp second half recovery. We will also review the direction breadth across the stock market, what short-term price momentum means for investors in December, and a final look at the impact of seasonality of stock prices in December.
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