The Dow might be headed higher, only ask Google

Both Wall Street and Google contend a batch market’s record-setting run is protected into year end.

And what a run it has been given a summer dominated by fears of an imminent U.S. recession. Powered by large top tech names Apple (AAPL) and Microsoft (MSFT), a Dow Jones Industrial Average has zoomed forward by about 7% in a past 3 months. The SP 500 and Nasdaq Composite have tacked on roughly 7.5% any during that same span. In total, a Dow alone has combined an considerable 4,165 points year-to-date.

Three seductiveness rate cuts from a Federal Reserve this year, promises by Fed officials to keep rates low into 2020 and startling resilience by Corporate America to President Trump’s trade fight with China have fueled a eye-popping gains in a markets.

So many for that recession.

Now with only over a month left in 2019, many pros on Wall Street consider a larger risk to investors is blank out on some-more gains rather than a intolerable 10% to 20% pullback like we saw final December.

“I consider 2020 we are really constructive on. Risk resources will continue to perform from here on out. We are positioned that approach today,” Invesco Global COO Mo Haghbin pronounced on Yahoo Finance’s The First Trade.

“I consider for day traders and short-term folks a marketplace looks a small frothy here. But we consider in a middle tenure — 6 months and —history is transparent that new highs in markets typically breed improved than normal earnings 6 months out,” adds Riverfront Investment Group strategist Chris Konstantinos. “So we consider we have to honour a summary of a marketplace that something good is happening.”

Google is on house with that logic, points out investigate outfit DataTrek.

Despite a Dow touching new annals recently, Google hunt seductiveness in a “Dow” is during a lowest levels in some-more than 12-months, DataTrek finds. DataTrek says this is normal and a good denote of markets being staid to conduct higher. Peak durations of Google hunt volume over a final year, DataTrek investigate shows, has occurred around furious swoons in a marketplace (late Dec 2018; mid-to late-May 2019; mid-August 2019).

“On balance, this is good news given a U.S. economy is streamer into holiday selling season. Yes, reduction than half of Americans possess bonds though equity markets are still critical to ubiquitous consumer confidence,” writes DataTrek co-founder Nicholas Colas.

Hey, who is going to disagree with Google’s batch calls?

Brian Sozzi is an editor-at-large and co-anchor of The First Trade during Yahoo Finance. Follow him on Twitter @BrianSozzi

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