earnings recession

A Wobbly Rally

I.C. Angles Investment Post…

At the end of October the stock market put in a double-bottom from the sell off that began in August, and has since managed to reclaim most of its lost ground. Although not yet able to challenge the market highs, the S&P 500 index is back to the sideways channel established over most of the year. But this is hardly reason to celebrate. The rally may have made up most of the lost ground from a terrible August, but this has been a very ugly rally that gives a lot of reason for concern about the future prospects of a stock market that is looking increasingly wobbly.

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Stock Market Tug of War

I.C. Angles Investment Post…

So far in 2015, the bulls and bears have been in a tug of war on the direction of the stock market. The first quarter has fluctuated between the S&P 500 posting new record highs and turning in a negative return for the year. Both sides have compelling arguments for stocks heading lower or higher in the near term. The bears argue stocks should head lower, because most measures of economic performance have come in below expectations. The economy rather than taking off, as was widely anticipated, is ebbing closer to stall speed. Obviously a recession would be a huge negative for stocks. On the other hand, the bulls have several reasons for why disappointing economic data should not stand in the way of stocks making new highs.

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