Tags: february | stocks | gloomy | history

History Suggests February Will Be Gloomy for Stocks


By    |   Wednesday, 01 February 2017 09:06 AM

Historical performance suggests that the market will suffer a rough month, according to Jonathan Krinsky of MKM Partners.

Krinsky explained to CNBC that during the past 40 years, February has been the S&P 500's weakest month within the generally strong November to April period; stocks have risen only 0.06 percent in the average February, according to his work, CNBC reported.

Febraury has been the most dangerous month for stocks in years after elections, CNBC explained. In the postelection Februaries since 1977, the S&P has fallen by 1.85 percent on average, CNBC reported.

Krinsky advises savvy investors that the market has gone 75 days without a daily decline of 1 percent or more. He warns that a drop of that size just may loom around the corner.

"Once you have that, you tend to see weaker-than-average returns over the next couple weeks," he told CNBC.

Krinsky expects the S&P to tumble 3 to 6 percent in the weeks ahead. This dip would serve as a "welcome buying opportunity," he said.

To be sure, another respected financial guru admits Trump’s honeymoon period with investors is ending as the tax cuts and regulatory changes he promised during the election get pushed aside by worries over immigration and national security.

Larry Kudlow, a Newsmax Insider and economist who advised the Trump campaign, said the administration needs to get back to work on reforming the tax code or stocks and the economy may suffer.

“If you don't get the business tax cuts until late in the year, I think it's going to damage the stock market,” he said in an interview on CNBC. “It's going to damage the economy because people are going to postpone activities.”

As his first week in office proves, Trump will be a demanding leader who applies the best of his negotiating skills to push for U.S. growth, as bestselling author David Horowitz recently predicted to TheStreet.com.

Trump won’t be an ideological purist like Republicans who support free trade but don't fight for fair trade, Horowitz said.

“We've had an anti-business president now for eight years who doesn't take a hard-nosed attitude towards these deals. Trump is going to get better deals for us, which is still free trade.”

Horowitz's new book, "The Big Agenda: President Trump's Plan to Save America," reveals Trump's "first 100 days strategy" to roll back Obama's legislative and executive record.

Horowitz's book is the first book about the Trump presidency and has soared to the top of the Amazon bestseller charts, becoming the No.1-selling book on the web.

Trump will also lead the way in making infrastructure spending to boost the U.S. economy, Horowitz said.

"Big Agenda: President Trump's Plan to Save America" is available at bookstores everywhere – or get your copy on Amazon – Click Here Now

“If the economy grows as it will under Trump, there's going to be a lot more money to spend,” he said.

(Newsmax wires services contributed to this report).

© 2021 Newsmax Finance. All rights reserved.

Historical performance suggests that the market will suffer a rough month, according to Jonathan Krinsky of MKM Partners.
february, stocks, gloomy, history
Wednesday, 01 February 2017 09:06 AM
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