Broker Check
October Highs mean September Lows are History

October Highs mean September Lows are History

November 02, 2021
Share |

The stock market had yet another positive week of gains to finish off a strong October performance with above-expectation corporate earnings as the main driving force. All three major U.S. stock indices (S&P 500, Nasdaq, and the Dow) ended both the week and the month at record highs.

A new record high means the stock market drop we had throughout September is officially over. This doesn’t mean another drop can’t start tomorrow, but it does mean the last drop is now in the history books. The S&P 500 dropped 5.8% during September, which is a relatively small pullback right on the border of a good buying opportunity. If it had dropped another 1 - 2% , I would have considered it a good buying opportunity and alerted you.

What does the remainder of the year look like for stock market returns? There’s a good probability the stock market will be higher than where it currently is. The world stock market already has had a good year (World Stock Index up 15%) and it will be a great year if it increases another 5% or so.

Photograph by Chris Liverani

.

.

.

.

.