Market action was a little disappointing last week. We thought a small rally was in order, but instead Friday’s eight-point drop on the S&P put the week at a slight loss. It seems investors are a little more skittish than we believed.
Nonetheless, our overall viewpoint remains unchanged. Stocks have more upside potential over the short term than downside.
Paradoxically, market behavior in recent weeks reminds us most of 1981-82. At that time, a bear market occurred in large cap stocks, while many other groups (particularly unweighted averages and the broad market) saw essentially flat returns. This was followed by an explosive rally that began in August 1982.
Here is what we expect this time around …
MR. MARKET TAKES A HOLIDAYRead more...
