Where are the stock markets headed from here?

Question

Where are the stock markets headed from here?

Answer 1

If anybody truly knew the answer to that question, they wouldn't be here sharing it on Yahoo Answers. They would be making trades based on that valuable information.

That being said, the stock market I believe will be closely tied to the upcoming election. The policies of Obama and the Democratic party will crush the market. They include higher income taxes, higher capital gains taxes, higher taxes on dividends, higher taxes on oil companies, tougher regulations, pullback on tort reforms making it more expensive to do business here, anti-trade provisions, higher wasteful government spending, more welfare providing disincentives to work, anti-energy policies, cap on CO2 emissions leading to more manufacturing and jobs going overseas.

Answer 2

David M has clearly never actually looked at the historical data regarding market performance correlated with which party is in the White House, since the market typically rises more under Democratic administrations than under Republican ones.  (No, I don't understand that either!)

The thing the 'market' likes least of all, though, is uncertainty; so the market is certainly headed higher just as soon as the election is over, and it will return to its historical average behaviour of growing an average of 10-12% a year, long-term.

If you regularly buy fixed dollar amounts of quality companies, you will always win in the end.

I foresee a fairly long upward run in the not-to-distant future, as recently retired Boomers realize they cannot live on the returns bonds, T-Bills or gold (LOL!) will earn them, and their money flocks to Dow stocks.  This run will end when Booomer expectations outpace the ability of Dow components to perform fiscally, but it'll be a nice spurt!

Answer 3

As per the different reports, market is going thru a bearish phase. This phases is expected to stay for 18 months to 2 years(6 months have already passed), so it will take another year for market to completely recover.

User 'Akash' has given a good answer. People are making money even at the current low levels. Not just that, significant amount of money has eroded......

Market is going to remain highly unstable and risky for a few more weeks

Answer 4

The market has seen a lot of correction in last couple of months, even more than that.

We should be expecting a reverse trend soon, but it would not be like the previous years.

The market is expected to trade between 13000-15000 in the next 6 months at least. Then it would consolidate.

The Global trends also cannot be ignored, and the crude oil prices have to be closely monitored as they have big impact on the market.

Local Inflation and the govt stability also plays a important part in deciding the fate of the markets.

So we can just wait and hope for the best in coming weeks.

Answer 5

Stock markets are bottoming out.  Major support levels are still being broken which indicates further downslides from here.  But as with anytime, one cannot certainly find out the market bottoms.  It is always better to buy in small quantities on major crash days.

Answer 6

Briefly, the stock markets are expected to be headed up in the near term.  However, no one knows the pecentage extent of this expected up move.  Further, no one knows to what extent if at all it would correct downwards in the medium term.

The fundamentals are okay.  However, due to adverse global and domestic events and their assumed negative effect on the future earnings growth capacity of the underlying corporate entities there is a downwards revaluation of stocks across the board.

Technically, there has been extensive price damage across the board and all stocks are in what they call the oversold territory.  So, there is expected to be an upward correction from here before the next down move may occur.

Psychologically there is a fear of further loss in the minds of most investors.  Therfore, they are either sitting on their loss making stocks hoping for a turn around.  Some of them have booked their losses and moved on.  While other are waiting on the sidelines in anticipation of the upmove before they start buying stocks.  So, basically it is a wait and watch game.

Happy investing,

Akash

http://www.narachinvestment.com