Wednesday, 29 January 2020 10:55

Why Stocks Will Keep Rising

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(New York)

The market had gone an incredible 70 days without a closing gain or loss of more than 1%. It was one of the longest streaks in history, but it all came crashing down this week as the Dow fell 1.6% and the Nasdaq fell 1.9%. The big question is what happens next. Generally speaking, it does not matter if a long streak of placidity is broken by a positive or negative move—stocks tend to keep doing well either way. Of the 12 times such a streak has happened, in 9 of the them gains were positive over the following year, with an average increase of 9.6% on a total return basis.


FINSUM: This is good historical context, but it is important to remember that none of those occurrences have anything to do with today’s market environment. That said, we remain bullish.

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