Unpacking the Stagnant Stock Market

As we end the second quarter, we want to take a look at where the U.S stock market is after this past year of ups and downs. Currently, the U.S. stock market is very stagnant on the outside, but industry analysts are discussing how it’s really bubbling underneath, more than it has in years. 

From the outside, the S&P looks very very quiet, more than it has been in some time, precisely 2017, according to a Wall Street Journal Article. In addition to that, we are seeing stocks at the highest prices since 2000s. Analysts are noting that it has to do with the recently trending short-squeeze stocks, such as GameStop, AMC, and Blackberry, inflating the stock market increasing prices all around. 

We are also seeing chatter around how the Federal Reserve has such strong power right now, in terms of controlling and affecting the stock market. It’s interesting to think about the reaction to such a small change from the Fed, allowing us think what type of reaction there will be if the Fed starts a normal rate hiking cycle and makes cash attractive again. We will continue to follow the news from the Fed and discuss how we think that will affect the economy and stocks. If you would like to discuss the market with us and let us know your thoughts, email us at info@shermanwealth.com .


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