Stock Market May Need To Fall Before It Can Soar, Expert Says
The US stock market has proven uncannily adept at avoiding large daily declines in the wake of the Brexit vote, but one expert says this steadiness should actually be worrying us.
The S&P 500 index has clocked 50 straight sessions without posting a loss of more than 1% as of Wednesday’s close, MarketWatch reports. But it’s not only losses the market is avoiding, stocks have also seen very few large gains since reaching record highs in July, leaving major indexes with some of the flattest trading on record.
Sam Stovall, US equity strategist at S&P Global Market Intelligence, doesn’t like this calm. He says the US stock market historically comes under pressure if it goes for a long period without experiencing some bad days. Almost like a spring, the market may need to go down before we can expect it to start soaring back up. [MW]