August and September have had dismal records for stock returns over the past 20 years and with strategists warning that the market is overdue for a major correction, the next two months could be rough. But there are reasons to believe that any impending selloff may not be as cataclysmic as some fear.
Bank of America Merrill Lynch’s technical research analyst Stephen Suttmeier pointed out that there are some very important factors that suggest that the market’s upward trajectory remains very much intact despite the track record working against it.
“First half 2017 was above average and this bodes well for second half 2017 and the data for all periods, secular bull market years, and Presidential Cycle Year 1 suggest that the S&P 500 could end the year in the 2,550-2,640 range,” said Suttmeier in a report.
Gold Slides as Nonfarm Payrolls Beats Forecast
US Jobs Report Fails to Deliver Knockout Blow
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Craig Erlam
Latest posts by Craig Erlam (see all)
- Week Ahead – Earnings to dominate - 01/22/2021
- A tough end to the week - 01/22/2021
- Oil and gold slip as dollar higher - 01/22/2021