Is the S&P 500 on the verge of a big sell off and may see higher levels on post-election stimulus hopes? Well there are a few reasons that the S&P 500 could do this and as a result, you should keep some things in mind.
First and foremost, the Dow Jones Industrial Average is at a record high but is well below the record highs that were reached during the last boom time. This is due to the fact that the real estate and stock markets have been hit quite hard by the economic recession. Now the only thing left for the Dow Jones to do is to find some sort of support.
As far as the S&P 500 is concerned, it is up about 1% today as compared to the actual market cap per share. Since the index is up, you will want to wait a little bit before you sell or buy stocks. There is no better time to make some money. If you wait too long, the market could take off higher and this would cause the stock market to be oversold.
If you really want to sell stocks, you should look at the following issues that are being discussed now. The government is trying to pass a stimulus bill that is being pushed by President Obama which is going to increase the number of jobs that are being created in the economy. The biggest positive about this plan is that it will also increase spending and revenues.
Another thing that is being discussed is the Federal Reserve. This will have an affect on the S&P 500 since many investors like to wait for the central bank to start increasing interest rates so that the value of the dollar can rise. So if this does happen, then the value of the S&P 500 will start to go down.
Now as a result of these two factors, the economic recession has put more pressure on the banks and financial institutions. If they don’t get help soon, it could lead to a complete collapse of the system. If you buy stocks now, you will be doing your part to try to prevent this from happening.
Also, remember that this is not the first time that the stock market has seen a large pullback and it won’t be the last. so it is important for anyone who is investing in the stock market to keep an eye on the news and stay informed.
So remember, you can buy stocks now and be ahead of the curve when the stock market does what it does. in anticipation of any sort of new trends that may emerge.
Of course, when the economy gets back on track there will be more jobs available and the prices of stocks will go up. So even if the S&P 500 will start to go down, you should still be able to ride out this and make some money.
Another factor that will affect the stock market in the near future is the political transition that is going on during the economic recovery. So if Obama is re-elected, then expect some kind of tax relief. and maybe stimulus package for the American people.
This is going to put more money into the pockets of middle-class families and may help with some of the lower unemployment rates. So if you are looking to invest in the stock market right now, you may want to hold off and wait for the president to become re-elected.
If you have been looking for an opportunity to make a good profit then you need to start looking at the S&P 500 now. In fact, the stock market is one of the biggest places to start looking for bargains. You can buy low and sell high and get a very good return on investment.