Is The Bull Market Sustainable?

Can The Bull Market Be Sustained?   Or Is The Bull Market Showing Signs Of Wearing Down

momentum of the marketsThe stock market has had an impressive year, with all time record highs and a continually strong upward direction.  However, it is has been since August 2nd since the Dow Jones Industrial average hit another record, peaking at 15,658.36.  The question on everyone’s mind is, how high can it go?  Is it wise to look for some caution flags before plunging headlong into the excitement and hype of the stock market?

Are Market Bears Correct, Has The Stock Market Lost Its Momentum?

After months of upward progression the last week the down broke its six week streak of gains when it went down by 1.49%.  While this may not be a significant loss, many investors are wondering how long the market can keep up such significant upward progression.  Everything has a tendency to return to average, and that is especially true when considering the stock market.  At any point in time in history when the stock market has been on such a significant winning streak, it’s just a matter of time before a correction happens and things return back to a more “normal” pattern.

Don’t Follow The Crowd When Predicting The Momentum Of The Market

One particularly interesting fact is that a recent poll showed that there are much fewer market bears out there than there were even a few months ago.  Great you may think! Everyone thinks things are going well, maybe it’s time to jump in with both feet.  In actuality, this thinking process is usually wrong.  The crowd is almost always wrong about when a market is making a correction.  Because such few market bears exist you should be even more wary of a dip in the market than before.

With so many contrary opinions out there, how do you really know which direction the market is heading and whether or not you should jump in or pull back a little?  For advice from a financial professional, well-versed by the ups and downs of the markets, speak to a Redhawk Wealth advisor near you today.




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