Caitlin McCabe

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57 appearances 1 recordings 1 series first heard Jul 2021 last heard Jul 2021

Caitlin McCabe’s voice in public audio — every appearance, attributed to the second.

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WSJ Your Money Briefing · Does the Stock Selloff Indicate a Shift in Investors' Outlook? · 20 Jul 2021 podcast

So as of Friday, the Dow Jones Industrial Average was up 13% for the year.

The S&P 500 was up 15% for the year.

And that's stumping analysts and investors who have been sort of bracing for this pullback due to these high sentiment levels that we're seeing.

And yet the markets just keep rising for the first six or seven months of this year so far.

We're in this really unique situation in the market right now where markets have received so much stimulus as well as support through easy monetary policy from the Federal Reserve that it's just been really hard to bet against the stock market.

You know, with interest rates so low, it's really been hard to find consistent returns outside of stocks.

And so beyond that, we're also seeing exuberance that we've been witnessing for the past six months from retail investors who have been sticking around the markets, I think, much longer than some analysts and professional investors were expecting.

And that's provided continued demand for stocks as well.

So several factors really just pushing markets up and keeping momentum rising throughout this year.

I think anyone who is an investor, especially those who are buying and holding for the long haul, you know, they want the stock market to keep going up or at the least they want to position themselves where they can receive the best return possible.

And so these are typically really important indicators for everyone to watch and pay attention to and perhaps think about how to position their portfolios around them.

But the big catch 22 this year has been that, you know, back in February or March, if you saw these elevated levels of sentiment and you bet against them, you actually would have turned out to make the wrong bet.

You know, it's really paid off this year to kind of trade with the herd and keep trading upwards with this rising momentum.

So it's admittedly been really difficult to figure out how to position yourself around these gauges this year.

So in the past few weeks, we have seen some of these sentiment indicators

retreating a bit from those extremely bullish readings.

They are still hovering way above average or right near average.

But I think there are several things that are weighing on investors' minds right now.

We named it earlier, the Delta variant is certainly a concern for investors and what that means for the economic recovery.

I think some investors are wondering, will this mean restrictions down the road like we saw last year?

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