Teetering
The U.S economy is currently doing quite well, with stocks peaking, investors continuing to pile into different sectors, and many companies taking off. After the pandemic’s lows, the market has been moving quite fast and quite rampantly in a positive direction – and being over halfway through 2021 – some are asking: how long will this trend keep up? The answer differs on an investor-to-investor basis, but one common opinion now is that that a pullback is on its way, and it’s only downhill from here. Because the stock market is not always a reflection of the present but rather what investors feel the future will look like – how far can the positive sentiment really go? I mean, there are only so many good things that can happen before some bad has to come back into the picture.
On top of this, COVID-19 may not be as gone as some think. This is because the new Delta variant of the coronavirus is threatening to weaken economies around the world. With the U.S government, pandemic relief efforts slowing down, and inflation rates outpace the demand for supplies – the bullish case in the context of the Delta variant may not be too strong. Another major variable is the beginning of the end of the Federal Reserve’s market assistance: interest rates rising and stimulus checks leaving. However, when, and how likely this is to happen is not confirmed. Stock market averages nearly doubled since March 2020, so could it be time to see a major pullback? What do you think of all this? And will the market drop anytime soon?
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.
