Stocks keep reaching new heights, and investors keep giving them the side eye.
Even as the Standard & Poor’s 500 index was setting a string of records through July, nearly as many dollars were leaving stock funds as entering. Investors are still skeptical of a market that hurt them so painfully during the 2008 financial crisis.
The hesitancy isn’t surprising, even seven-plus years after stocks began one of their longest-ever runs, given the long list of worries hanging over the market. Chief among them is that companies’ stock prices have risen more quickly than their profits, leading to worries that stocks are too expensive. Economic growth around the world also remains slow, and companies are having a tough time drumming up more sales. The wild, down-and-up ride that stocks have been on for the last year hasn’t helped either.
Some analysts see this as an encouraging signal. If the S&P 500 can climb to record highs now, when investors are largely snubbing stocks, it could rise even higher when or if strong demand returns. Many strategists along Wall Street are forecasting continued modest gains for stocks, largely because they see an imminent recession as unlikely.
Read the Full Article: Source – CBS News
Time For Truth: (CBS News) – Stocks keep going up, and investors keep saying no thanks