Markets Down In Volatile Week, But Nasdaq And Small-Cap Russell 2000 Up For The Month  Image: Bigstock Stocks closed lower on Friday in a volatile week. But the Nasdaq and small-cap Russell 2000 ended higher for the month. For January, the Dow ended lower by -2.04%, and the S&P was down by -1.11%, while the Nasdaq was up 1.42%, and the Russell was up 5.00%. The saying, 'as January goes, so goes the year,' is a bit muddied this year given both the red and green arrows. But aside from the last few trading days, there's no denying how strong stocks were in January prior to that. And I think that bodes well for the rest of the year. Add in the likelihood of more vaccines coming out, more people getting vaccinated, big cities easing restrictions and allowing businesses to open, and all of that pent-up demand (read spending) just waiting to be unleashed as life starts returning to normal, and we could see the market soar. Going into the year, Goldman Sachs forecast the S&P hitting 4,300 by the end of 2021. That's a 15.77% gain from here. Moreover, they put the S&P at 4,600 by the end of 2022. That's an additional 7%. All in all, that represents a 23.85% move from where we are today. And with full year GDP this year expected to grow at the fastest pace in 38 years, I wouldn't be surprised if the market goes up even more. Throw in near zero interest rates for the foreseeable future (Fed's suggesting next three years), and the likelihood of even more stimulus coming by mid-March (or sooner?), and you've got all of the ingredients for a big move. What we're seeing right now in the economy and the market is history in the making. And that means the potential for historic gains. So use this pullback to your advantage to pick up more of your favorite stocks, or stocks you wish you were in, at even better prices. Because ultimately, it looks like there's a lot more upside to go. See you tomorrow,  Kevin Matras
Executive Vice President, Zacks Investment Research | 
没有评论:
发表评论