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Stocks Recover Some Lost Ground
Just when investors were beginning to fear the worst, stocks worldwide surprised on the upside with an average index advance of 4 to 5% last week. It was the best gain for the S&P 500 Stock Index in over 5 years. As if to rain on the parade, however, market observers fear that the rapidity of the turnaround may end up fueling further declines.
Market technicians are still optimistic for 2018, although sharp swings in prices are likely to increase. If so, investors will need to maintain an iron constitution lest they fall prey to the periodic hysteria.