Markets

How Long Does the Stable Market Last?

We have seen the S&P500 toggle around the 2100 level for over a year. As an economist, I call this a 'stable' stock market. One day, or period of days, the major indexes fall apart.

Then, the optimism on a forward look returns, and the major indexes rise back towards 2100. How long can this last? Frankly, this can last for a long time heading into 2016. The reason is that the weakness in the oil and materials markets impacts more than just the stocks in those sectors. It adds a layer of uncertainty to the entire risk spectrum of financial instruments. And once there is worry about risk, the upside to 'animal spirits' needed for a new leg up falls off.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

FTD COS INC (FTD): Free Stock Analysis Report

AVAGO TECHNOLOG (AVGO): Free Stock Analysis Report

AMSURG CORP (AMSG): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

AVGO

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More