“Coiled Spring” Stock Market Likely To Disappoint In 2016

Jon Alternative Media, Blogosphere, Market Commentary, War

2015’s stock market range (from high to low) is among the narrowest since World War II. This ‘compression’ has led the horde of asset-gatherers and commission-takers to suggest that stocks are a “coiled spring” ready to burst higher from this newly-formed permanent plateau. However, as S&P Capital IQ’s Sam Stoval notes, that is the exact opposite of what to expect based on history. In fact a narrow range year is typically followed by a low return year, not a high return year.
Anyone expecting a jump in the Standard & Poor’s 500 Index after its relatively narrow range this year may be disappointed, according to Sam Stovall, S&P Capital IQ’s chief U. S. equity strategist. As Bloomberg reports,

This post was published at Zero Hedge on 12/30/2015.