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Equity Strategist Sam Stovall: Bull Market Shows No Signs of Slowing Down

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By    |   Tuesday, 24 October 2017 01:21 PM

Equity strategist Sam Stovall advises savvy investors that he can’t see anything that will stop the current bull stock market from charging even deeper into record territory.

Stovall, CFRA Research's chief investment strategist, explains that markets usually will flash some sort of warning sign before a 10 percent pullback, commonly referred to as a “correction.”

Such a worrisome symptom is rising volatility, CNBC explained, citing Stovall's research.

“Over the past 40 years, the S&P 500 posted an average of 67 trading days of high volatility, in which it rises or falls by 1 percent or more, before it tops out and drops at least 10 percent,” CNBC.com explained. Stovall pointed out that the S&P 500 has had just 11 days in which it rose or fell at least 1 percent during the past 12 months.

"Investors have been both pleased and unnerved by the rising number of new highs that have been accompanied by an absence of volatility," Stovall said. "The market will likely continue to surprise investors in 2017 in a positive way, and may even be kind enough to warn of an impending correction through a ramp-up in daily volatility."

On Wall Street, the Dow Jones index was set to record its biggest intraday percentage rise in more than a month on Tuesday, boosted by gains in industrial giants 3M and Caterpillar.

Both stocks contributed about 160 points to the Dow’s 195- point rise, Reuters reported.

“At these levels, only companies that have both top-line and bottom-line beats could make the market move higher,” said Rick Meckler, president of hedge fund LibertyView Capital Management LLC in Jersey City, New Jersey.

“It offers some hope to investors that this rally will broaden out, which it needs to do, to sustain at these levels,” Heckler said.

Strong earnings and optimism about President Donald Trump’s tax plans moving forward helped the Dow and S&P close at a record high on all five trading days last week.

(Newsmax wire services contributed to this report).

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Equity strategist Sam Stovall advises savvy investors that he can't see anything that will stop the current bull stock market from charging even deeper into record territory.
equity, strategist, sam stovall, bull, stock market, investors
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2017-21-24
Tuesday, 24 October 2017 01:21 PM
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