Is the Stock Market Poised For Crash, Correction Or More Gains?

The S&P 500 and Nasdaq hit new record highs Monday, continuing what appears to be a never-ending rally in U.S. stocks. When will the market crash? Is there a correction brewing, or does the rally have room to run? Year to date, the S&P 500 has gained 14.3% while the Nasdaq and Dow Jones Industrial Average (DJIA) are each up 12.4%. That follows strong gains last year, especially in the Nasdaq, which soared 43.2% despite a raging pandemic. The S&P 500 gained 16% and the Dow rose 7.3% in 2020. By late 2020, all three major indexes were apparently focused on a future with coronavirus vaccines that could at minimum tame the pandemic and hopefully eradicate it.

The pandemic has been tamed in this country as a result of vaccinations. Sixty-three percent of Americans 12 and older have received shots, but only 54% are fully vaccinated, according to data from the Centers for Disease Control, and the Delta variant, which is more contagious, is spreading here.

Meanwhile, the S&P 500 hasn’t had a 5% correction based on closing prices since the end of October, which makes some market participants jittery. Is the stock market in a bubble verging on bursting, making way for a full-out crash? Is a 5%-10% correction more likely, or, better yet, a continuation of the rally?

ThinkAdvisor asked a number of market experts for their analysis of the current market and their expectations for what happens next. Check out their answers below.

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Source: ThinkAdvisor