Stocks could have more room to soar by year end.
Yes, the market has already had a good run since the October low, but there is a good chance of seeing a lot more, according to a recent report.
“This year, the S&P 500 has risen 9.2% from the October 4 low through November 19,” states a recent report from New York-based financial analysis company CFRA. “Even though this one=month+ return exceeded the average 2-1/2 month average gain over the past 76 years, the S&P 500 still has a good shot of posting an even higher return.”
In other words, get ready for a possible further surge in the SPDR S&P 500 (SPY) exchange-traded fund between now and year end.
The bullish call comes just as the market flirts with yet more record highs and some commentators worry that stock valuations are over stretched by historical measures.
Specifically the report says that 37% of the time (or 28 years out of the 76 total) the S&P jumped more than 9.2%. During those 28 periods the market rallied 12.7%.
“[That implies but doesn’t guarantee] the S&P 500 still has more upside potential,” the report says. It does caveat that call, saying that there likely needs to be a rest period before any market advance resumes.
Miners / Energy Stocks Stuck in the Doldrums
Separately, the report highlights that oil and gas drilling as well as diversified metals and mining were the worst two performing sub sectors in the S&P 500, dropping 15% and 21% respectively over the week November 12 through November 19.
In other words, despite soaring gasoline and oil prices the energy business got beaten up pretty badly last week. That comes in concert with massive moves by Western governments to phase out using fossil fuels over the next few years.
"Market" - Google News
November 23, 2021 at 06:40PM
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More Room For The Market To Rally Before Year-End - Forbes
"Market" - Google News
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