Is the stock market headed for a correction in 2015? Even the more bullish analysts will admit it’s a possibility. Jeremy Stiegel talks with CNBC about what may be a bumpy road for stocks this summer. At the first sign of a lower Dow Jones average, many will jump out of the market, much to their later regret. The reason for this costly mistake may be rooted in the investors’ character, as Jason Lina explains. Correction or not, Liz Ann Sanders of Schwab remains optimistic about the U.S. economy and the stock prices that may be affected by it. Advisor Perspectives covers the story.
Stock Market In For A Correction? – Although he says he is still “bullish” in the long term, stock market analyst Jeremy Siegel warned on Monday that the markets may be in for a correction by summer if the Fed moves to raise interest rates. Siegel also said he considers 20,000 on the Dow Jones Industrial Average as fair market value. But with blue chips about 10 percent away, he said he doesn’t see a straight shot to Dow 20,000. Read more…
Why Long-Term Is Hard– Many investors understand the benefits of long-term discipline, but the evidence suggests that few practice it. The oft-quotable Warren Buffet said, “The stock market is a highly efficient mechanism for the transfer of wealth from the impatient to the patient.” Jason Lina, lead advisor with Resource Planning Group, examines this investor behavioral trait. Read more…
Trampled Under Foot: Earnings Estimates Crushed; But Not Stocks– Earnings estimates have been coming down fairly sharply courtesy of the strong US dollar, low oil prices (for energy companies), and recently-rising wage expenses. Liz Ann Sonders, Chief Investment Officer at Schwab, does not think the US economy is at risk of a recession, even with earnings growth having dipped into negative territory. She explains why in this article. Read more…
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John R. Day, Bill Ennis, Stephanie Davidson and Matt Heller