MarketWatch's Arends: 3 Reasons Why Stocks Can Rise Further

Thursday, 14 Aug 2014 09:39 PM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The S&P 500 has rebounded 2.6 percent from its low last Thursday, leaving it less than 2 percent away from its record high.

And MarketWatch columnist Brett Arends sees a good chance the rally will continue. Three factors "suggest" further gains, he says. 

1. "Absolutely everybody seems to be predicting a crash this autumn," Arends writes. "When everybody is saying the same thing, they are often wrong."

Editor’s Note: Dow Predicted Will Hit 60,000 — Buy These 4 Stocks Now

2. Retail investors sold stocks in a panic last month
. "History has shown, alas, that Mom and Pop are absolutely terrible market timers," Arends says. "There is no proof that they will be so again, but it's certainly possible."

3. A Bank of America Merrill Lynch survey shows that money managers have turned more bearish toward stocks — a contrary indicator.

But for the longer term, "if math and history are any guide, they suggest that stocks overall will generate sub-par long-term returns from current levels," Arends says. Of course that means there will probably be buying opportunities along the way, he notes.

Not everyone is optimistic about stocks for the fall.

"In October, the Fed is going to get away from money printing, and since we haven't had a correction in a long time, it could undermine things very quickly once people realize growth isn't in line with their expectations," Jeff Duncan, president of Duncan FinancialManagement in Sunset Hills, Mo., told Reuters.

The Federal Reserve currently plans to end its bond-buying program in October.

Editor’s Note: Dow Predicted Will Hit 60,000 — Buy These 4 Stocks Now

Related Articles:

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Stocks Rise, Gold Sinks on GDP Report, While Oil Falls on Output

Thursday, 30 Oct 2014 16:30 PM

U.S. stocks rose, sending major indexes higher for the month, while gold erased its gain for the year after data showed  . . .

Arthur Levitt to Leave Policy Advisory Role at Goldman Sachs

Thursday, 30 Oct 2014 15:59 PM

Arthur Levitt, the former chairman of the U.S. Securities and Exchange Commission, said he will leave his role as a poli . . .

Neal Asbury: Thank Obamacare for Driving Older Americans to GOP

Thursday, 30 Oct 2014 13:20 PM

With the advent of the Affordable Care Act, the initial feeling was that older adults would embrace Obamacare and thank  . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved