S&P 500 Hits All-Time High, But Could Break Down Due to Bad Fundamentals in USA
The American stocks are flying all-time high once again with the stock market closing at a new historic record on Monday. The S&P 500 index closed on Monday at 2,168. The index reached over 2130 for the last time in mid May 2015. The bull has been caged within a tight range for almost 14 months.
The proximate causes of the current rally are the good-to-decent economic news from China, Japan and U.S.; short covering of the mauled bears; and a hint from central banks that the worldwide extremely low interest rates would persist. Market technical measures such as breath and trading volume are strong.
However, that doesn’t appear to be uplifting the American’s spirits. Most American tell about how the U.S. economy is becoming worse, not improving. And this negative sentiment has existed since the 2008 financial crisis.
With four months remaining before the Election Day, the economy is the major thing that worries American voters. The economy has not returned at full force from the Great Recession eight years ago. It is undergoing an annual growth rate of 2%, lower than the historic mean of more than 3%.