The bull run we have seen over the past year may be coming to an end, or at the very least losing some steam according to some experts. Overall, the market remains strong with the S&P 500 reaching a record high last Friday for the 15th time this year. Despite this, however, stock market futures are indicating a less bullish start to the trading week. Some of the biggest stocks have already taken hits, especially in the technology sector, with the NASDAQ down over 3% in the past month.
According to Matt Maley, a strategist at investment firm Miller Tabak and Company, if stocks can keep rallying, the upside will be very limited. This is mainly because the market has already factored in fundamental growth expectations over the next 12 to 18 months into pricing, leaving limited room for continued growth in the short term. Miller also predicts that although the S&P remains strong despite the NASDAQ doing poorly, based on historical data, if the divergence between the two grows more, it could have a negative impact on the overall market.
On the other hand, some investors are bullish. For example, just a few weeks ago an Investopedia survey revealed that 45% of respondents said they are bullish on US stocks versus just 17% who were bearish.
What do you think about the overall stock market? Do you think it will be heading bearish, neutral, or bullish in the coming months?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.