The 30% Stock Market Boom that May Be Coming

The 30% Stock Market Boom that May Be Coming

You can’t talk about the stock market without talking about vaccines and the virus. This according to a recent article in Financial Advisor Magazine.

“People are a little nuts about vaccines and the virus. This has been true for a while, but it is still true,” the article states, noting that over the past year, the pandemic has proved bad for business in the short-term, but not necessarily in the long-term. And while it may seem unlikely now, S&P 500 data indicates a coming boom that could be half as large as last year’s.

Last year, the article reports, the market boomed because the Fed poured liquidity into the economy and the government gave out stimulus money. If future variants of the virus result in those same actions, it seems unlikely that the stock market will go down.

And though it’s hard to pinpoint the cause of a bear market, a withdrawal of liquidity by the Fed when they tighten policies could do it. Hiking up rates and an attempt by the government to reduce the deficit could result in a crash.

But so far, that’s not even a blip on the radar, the article argues:” This is how markets work: it will matter when it matters, and not a moment sooner. There is no use thinking about it now.”

In the meantime, the article concludes with a prediction for a possible 30% rally in the stock market over the next 12 months.

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