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S&P 500
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1 min

Here is one often-overlooked reason why U.S. stocks have been steadily climbing over the past 15 years

1. S&P 500 earnings volatility has decreased since the 2008 financial crisis. 2. Corporate share buybacks contribute to reduced stock supply and demand imbalance. 3. Continued $1.5 trillion annual inflow supports stock price stability. 4. Two bear markets since 2011 highlight market resilience despite selloffs. 5. Recent decline marks first three-day losing streak for major indexes since March.

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FAQ

Why Neutral?

While bullish factors are discussed, recent selloffs indicate volatility risks. Historical bull cycles, like post-2008, have been countered by periodic corrections.

How important is it?

Factors influencing supply and demand have significant backing and historical evidence, sustaining S&P 500 interest. However, ongoing low stock performance tempers bullish sentiment.

Why Short Term?

Short-term fluctuations may stem from market psychology over supply-demand dynamics. Historical trends show rapid shifts during periods of bearish sentiment.

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