Market has taken everyone by surprise by a rapid recovery in last three weeks. In most parts, the gains came from testimony from FED chairman regarding fate of QE (regarding chatter about bond buying program every month). Earnings season will be winding down in next two weeks. Now the BIG questions is can this market sustain its momentum!!! What should we do?
Market appears to be recovering from the drop which occurred in mid June, however we are not out of the woods yet. Friday's job report was good and may provide much needed push to the market BUT earnings season is starting hence expect rise in volatility. Where are we headed and what to expect next!!!
Market pretty much gave back all the gains made during entire month of May. Moody's rating agency has warned that US needs to put its act in place else they will downgrade our debt rating status. In short, expect more volatility ahead and lot of drama in coming weeks/months. What should we be prepared for?
Last week we saw that breaks were applied to this BULL rally. Now will this pullback prove to be a dip and buyers will step in OR will it convert into a choppy road ahead!!! As of now the most likely scenario would be choppy road ahead and eventually fall into a correction as the market appears to be over extended at this point. What shall we do with our long term investments?
It appears like this market has decided to continue climbing higher without a breather. With every passing day, more and more people are getting frustrated who happened to exit this market long back. Pretty much everyone is expecting a pullback but market often does not like to do what everyone expects it to do. Market can continue to rise further until eventually everybody sitting on the sidelines are sucked into it. What shall we do?
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