That’s It?
The stock market is plowing forward whether you are ready or not. From the bottom in June, the S&P 500 has risen by 16 percent, and for the first time since October the markets recorded 4 consecutive weeks of gains. Instead of being in bear market territory, we are now at correction territory for all-time highs, and we’ve seen flashes of the 2021 stock market in the last month.
Recently, we’ve gone through a mini meme stock rally, meaning that stocks haven’t gone up by 10,000%, but instead a little less. Bed Bath and Beyond is up by more than 100 percent recently, while AMC is sitting around the 80 percent mark. GameStop hasn’t moved as much, but they rise and fall together. Short interest was high and positive sentiment in the market motivated retail investors to buy shares. It looks like Coinbase might be joining the clan as their shares have jumped by more than 50 percent in the last few weeks after recovering from negative regulatory news.
This still seems fragile to people as the worry is that valuations in certain areas are too high for what’s to come. The inflation report showed us that it might’ve peaked, but it didn’t give us enough justification that the current rates are doing enough. Because of that, the Fed will continue to raise rates as they even said it wouldn’t stop until there is enough evidence that inflation is decreasing. The market is now in a confused state where it’s unknown what will happen next, especially with earnings on the back burner. Future economic data will define the trend and the midterm elections could definitely play a factor.
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.
