Analysts agree on April stock market activity
Taking stock of spring 2018 market patterns, wealth management firm Raymond James recently predicted that May’s activity will continue to mimic monetary fluctuations seen in April as interest rates will likely increase.
According to senior research associate Andrew Adams, the calendar year has already seen increased volatility, yielding an “essentially flat” S&P 500; while senior portfolio analyst Joey Madere observed stronger figures than expected for 2018’s first quarter.
Specifically, GDP and consumer spending rose slightly; equities are expected to demonstrate year-over-year growth; global trade picked up despite “trade war” discussions, and domestically the 10-year Treasury note saw a new high of 3 percent.
Experts added that although the curve remains essentially flat, the bond market may improve substantially with potential for growth in stocks.
Adams noted that “odds favor an eventual upside breakout from the current trading range … Given the economic and earnings backdrop, pullbacks should be viewed opportunistically,” according to Raymond James.
“Investors should continue to make decisions based on their long-term goals,” the company stated. “A well-diversified portfolio is designed to allow you to participate in upside potential as well as serve as ballast for any short-term volatility that may arise.”
Based in St. Petersburg, Florida, Raymond James Financial provides personal wealth management services, investment banking and planning, specializing in private clients, capital markets, asset management and banking.