Several stock market investors expected a more unpredictable and volatile year for the stock market in 2018 without expecting such severe and intense changes on Wall Street.
With such unpredictable moves this year, stock markets have not undergone such wild changes and steps since the financial crisis.
Ryan Detrick, Senior Market Strategist for LPL, spoke to CNBC’s “Trading Nation”, saying that “Last year, 2017, was one of the historically least volatile markets we’ve seen since the mid-60s so it’s not too much to say we expected more volatility in 2018.”
He continued to say: “But what we are seeing, we’re really getting a lot of volatility.” Stocks have continued to drown after President Donald Trump confronted Russia, insinuating at missile strike in Syria as an answer to the town in Damascus which was suffered a chemical weapons attack.
American stock market index, S&P 500, has seen its most volatile year since 2009. With China devaluing the Yuan back in 2015, stock markets suffered over a 6 month period to find a bottom.
Ryan Detrick has said that this is not a repeat of the events of 2015. Detrick does not believe that stock markets will take as long as they did in 2015 to find a bottom.
He spoke further to “Trading Nation” by saying that “We have expanding earnings. We were in the midst of an earnings recession back in the middle of 2015. Now we have earnings that are going to be up about 20 percent in the first quarter.” “The global economy is still really strong and it’s being led by earnings. That’s one major difference between now and 2015.”
He spoke about how the stock market was in the middle of an “earnings recession” and that the global economy was a strong one and that it was lead and ran by such earnings. He also mentioned that such earnings have risen at least 20 percent in the first quarter.