Summary
- Valuation and technical trends indicate a short and shallow correction is coming, and could be worse if there are economy-jarring events.
- AI adoption will boost margins and broaden market breadth, with a potential bull market rally ending when 90% of stocks surpass their 200-day moving average.
- The short-term outlook sees corrections followed by rallies; tax policy changes post-election could trigger significant market moves, depending on the political landscape.
- This idea was discussed in more depth with members of my private investing community, Margin of Safety Investing. Learn More »
honglouwawa
I have stayed away from the rhetoric regarding the election that has permeated the press, blogosphere and too many quasi-investment articles. Instead, I am focused on market dynamics.
The S&P 500 (NYSEARCA:SPY) has a combination of valuation and technical
If you found today’s piece interesting, please remember to follow me and consider a free trial membership to my service:
Join us today to invest in a changing world with a Margin of Safety. Now 20% off your 1st year.
ETF Asset Allocation, Growth Stocks, Dividend Growth, Low Volatility Retiree Dividend Stocks, REITs, Option Selling For Income & Alternative Income.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA, GOOG, AMZN, MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.