Why stocks are hitting all-time highs: Strategist
US equities (^GSPC, ^DJI, ^IXIC) are bouncing back toward their all-time highs in recent trading days, although taking a small breather on Tuesday. Investors are patiently awaiting commentary from Federal Reserve Chair Jerome Powell's speech later this week before making more market movements. Could there be a rally or will stocks fall from their recent heights? Pence Capital Management CIO Dryden Pence joins Market Domination Overtime to give insight into the overall market, what investors need to know, and potential market movements after the Fed speech. Pence argues that earnings growth will be propelled by the other 493 stocks that are not part of the "Magnificent Seven." In terms of how the Fed may impact markets, Pence says: "I think much of what the Fed does is psychological and in terms of how they how they predict. So now... we think they'll move in September, the fact that we've moved, we've actually officially pivoted. We had this long pause for a year now. We've pivoted." out the recent growth of the economy: "We've grown the equivalent of the GDP of France since the pandemic in the last four years and that's the seventh largest economy in the world. So when you think of that, and corporate profits are at an all-time high. So the market makes sense for it to be at an all-time high. When you see more people working, making more money, what do Americans do when they have money? They spend it. That's stimulative to the economy." For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime. This post was written by Nicholas Jacobino
