Why stocks are hitting new all-time highs: Strategists
US stocks (^GSPC, ^DJI, ^IXIC) have been recovering towards all-time highs in recent trading days, despite a brief lull on Tuesday. Investors are patiently waiting for comments from Federal Reserve Chairman Jerome Powell’s scheduled speech later this week before making any further market moves. Will stocks rise or fall from recent highs? Dryden Pence, CIO of Pence Capital Management, appears on Market Domination Overtime to provide insights on the market as a whole, what investors need to know, and possible market movements following the Fed speech. Pence argues that earnings growth will be driven by the other 493 stocks not included in the “Magnificent Seven.” Regarding how the Fed will affect the markets, Pence said, “A lot of what the Fed does is psychological, and how we forecast it. So now we think we’re going to act in September. The fact that we’ve acted means that we’ve actually officially reversed course. We had a long pause of a year. We’ve reversed course.” Regarding recent economic growth, he said, “We’ve grown the equivalent of France’s GDP in the last four years since the pandemic. France is the seventh largest economy in the world. So when you think about that, corporate profits are at an all-time high. So it’s no surprise that the markets are at an all-time high. With more people working, more people making money, what do Americans do when they have money? They spend it. That’s what stimulates the economy.” For expert insights and the latest market trends, click here to watch this entire episode of Market Domination Overtime. This post was written by Nicholas Giacobino.