It was another crazy week, but this one ended much better than the last two.
Today, the broader markets ended higher for a second day. More importantly oil, which has been weighing down stocks since the beginning of the year, also made its second-consecutive gain.
The positive trading action has helped to ease the broader markets out of the correction mode that they found themselves in earlier this week. The S&P 500 managed a 1.4% gain for the week. This puts it at down “just” 6.7% for the year.
Whether this is a correction in a bull market, or a rally in a bear market, remains to be seen. Either way, it was a welcome reprieve for market-watchers after some $8 trillion in stock-market wealth evaporated over the last three weeks.
It wasn’t all good news today, though. Bank of America Merrill Lynch cut U.S. growth forecasts to 2.1% (from 2.5%) for the year. The bank also said the chance for recession has risen to 20%, up from 15%. BofAML pointed out, though, that it would be “a big stretch” for it to look anything like the Great Recession.
Right now, the best thing you can do right now is to give this market time and let it play itself out over the next week or two. And if you’re in the path of Winter Storm Jonas, to stay indoors and consume all the bread, milk and other staples you stocked up on.
Stay warm, stay safe and we’ll talk with you again next week.