The recent market has been volatile, to say the least, with stock prices going up and down on a daily basis. But in spite of the uncertainty, there are still some signs that investors can look at to get a better understanding of where stocks are heading.
Mish Schneider, a Wall Street strategist, recently gave his Market Recap in order to shed some light on this roller coaster of a market. Schneider believes that the market may be entering a new wave of uncertainty, one where “direction, momentum, and the behavior of the stock market is more about how investors process expectations than anything else.”
Schneider has identified three major factors that could shape the movement of the market in the coming weeks. First, he believes that the COVID-19 vaccine could cause a temporary recovery in the market, which is why he believes investors should be careful with their investments and not “fall in love with the vaccine rally”.
Second, Schneider believes that the unprecedented fiscal stimulus, particularly the new set of direct payments, could have a positive effect on investors who will be using the money to purchase stocks. Finally, Schneider noted that the Federal Reserve’s recent promise to Keep rates low for the foreseeable future could help stabilize the market, however there are still risks that investors should be aware of.
Overall, Schneider believes that investors should pay attention to the news as well as the technical signals of the market in order to make more informed decisions. He encourages investors to remain nimble and flexible when making decisions, as the market remains uncertain and volatile.
Schneider’s Market Recap serves as a useful guide to understanding the current state of the market. Investors should use it to make informed decisions, but also remember to remain aware of the risks associated with investing in stocks.