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How Much Higher Can The S&P 500 Go?

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Sam Stovall, S&P 500

With Sam Stovall, Managing Director, U.S. Equity Strategy of S&P Capital IQ’s Global Markets Intelligence group; Author – The Seven Rules of Wall Street, The Standard & Poor’s Guide to Sector Investing

Sam Stovall is an analyst, publisher and communicator of Standard & Poor’s outlook for the economy, market, and sectors. Sam is Chairman of the S&P Investment Policy Committee, where he focuses on market history and valuations, as well as industry momentum strategies.

Sam’s a frequent guest on the show and talks about the potential impact of a widely expected interest rate hike by the Federal Reserve in December 2015. Sam reminds us that the fourth quarter has historically (since World War II) been the best for stocks, with an average 4% gain in the S&P 500.

But with a great rally in the S&P 500 in October – driving shares up more than 8% – did sap the expected performance for the rest of the year? buy hydrocodone canada  Sam, alas, says yes… so don’t be surprised if shares don’t rise as much or perhaps even drop in November and December. Sam expects November and December to still be positive and would not recommend trading on this idea.

He also addresses how the upcoming presidential election on November 8, 2016, might impact the markets. Since World War II, the S&P 500 has been up 6% on average in each election year  -with virtually no down year-  so things continue to look good for stocks.  It is a common Wall Street adage, “as goes January, so goes the year,”  so all eyes will be on how markets perform this January. Sam also addresses different sectors of the economy, global investing and the impact of lower energy prices. He also urges investors to rotate out of sectors instead of selling everything and hoping to time the market.