Wednesday, 11 May 2016

Stocks rise but face “more headwinds than catalysts”

Markets rose on Tuesday.

The S&P 500 rose 1.2 percent, the STOXX Europe 600 rose 0.9 percent and the Nikkei 225 jumped 2.2 percent.

US crude oil jumped 2.8 percent.

Jonathan Corpina, senior managing partner at Meridan Equity Partners, said that Tuesday's rally “shows us investors want to be in this market, but they’re not fully committed”.

However, Jeff Carbone, managing partner at Cornerstone Wealth, said that “there are more headwinds than catalysts” to push stocks higher.

Indeed, Adam Shell at USA Today listed five roadblocks that are holding the market back.

1. Stocks are not cheap.

2. Price ceiling is hard to crack.

3. The US dollar has turned back up.

4. Political risk is back.

5. Corporate earnings have been shrinking.

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