News for the Week April 16 – April 20, 2018
General Markets / Economic
- Big oil producers said they would limit output for the rest of 2018 and perhaps longer, continuing a pact aimed at lifting prices
- World demand for oil could be dented by the US China trade dispute, the International Energy Agency said
- Amazon and Best Buy are joining forces to sell smart TVs powered by Amazon’s Fire operating system
- An article in the WSJ noted that surveys are indicated more and more parents are cheating to lose against their children in board games. I find this despicable! Part of being a parent and an adult is knowing ways to win. My child will not beat me in anything until she is able!
Commentary for Week of April 16 – April 20, 2018, by David Abuaf
A week that began with many wondering if the market’s correction was finally over ended with an answer: not yet.
While the week started off well – the S&P 500 gained in each of the first three days, Thursday saw the market selloff due to faster than expected wage growth. Fortunately, it didn’t manage to erase all the gains. Still, it remains clear that the correction that began following the S&P 500’s highs hasn’t run its course. But maybe we shouldn’t have expected it to.
It’s been just 84 days since the index hit its high on January 26. There have been four previous corrections since the start of this bull market. The quickest time it took the S&P 500 to regain its high was 157 days in 2012, according to BTIG data. While that doesn’t mean more downside is ahead, it does mean we could be dealing with the same back and forth a while longer ☹
“Corrections need time to build a wall of worry back up sufficiently,” explains Julian Emanuel, chief equity strategist at BTIG. It’s worth noting that an ongoing correction isn’t the same as a bear market – and there are few signs it will actually become one, says Brian Belski of BMO Capital Markets.
. All opinions presented are those of David Abuaf, and not of Raymond James or Forman Investment Services. All opinions are as of this date and are subject to change without notice.
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