©Reuters.Stock could rise another 15%, according to Stock Traders Almanac
Despite potential initial weakness, the stock could rise as much as 15% this year, according to the latest Stock Traders Almanac Newsletter.
The memo said there was an increasing likelihood of market weakness in the short term, with February being the weakest of the best months. They say the average performance in election years since 1950 has been “poor.”
Moreover, in addition to seasonal patterns, sentiment can also signal a pause and possible decline in the market.
“Market tops tend to be long-term processes, and based on bullish sentiment trends, this process is just beginning and could easily continue through the remainder of the year,” the company said.
Beyond geopolitical concerns, they believe market expectations for Fed rate cuts are most likely to cause a modest rebound in the short term, in line with historical and seasonal patterns.
As a result, we expect prices to weaken in the short term, in line with seasonal trends. But beyond that potential weakness, the company said it remains bullish for the remainder of the year.
“Our bullish base case for full-year earnings in the 8-15% range remains in place,” the company said. “The timing and size of rate cuts, elections and geopolitics are likely to cause some disruption along the way.”
