If you missed the part one of this article then you can FIND IT HERE. So maybe to consider reading the first part before reading this one but of course it is up to you and I can’t force you to anything.
3) Stocks simply may be unable to repeat what they have done
Last year the S&P 500 was up at least 25%. However when the professional analysts had tracked how the stock market had fared on a rolling basis in past decades.
“The data shows that strong stretches usually are followed by more-lacklustre periods” according to Mr. Stovall from CFRA.
Based fully on how the market has been doing at the end of 2021, all the odds favor a gain of no more than 6% in 2022.
4) Corporate profit growth may lose the steam which it had.
This point is about the corporate profits which are about the key ingredient in investor enthusiasm for stocks.
And the reason why the corporate profits are relevant here is because they are estimated to be about 43% higher for 2021 than they were in 2020. But when it comes to 2022 then the corporate profits is estimated at only around 7%. Which is very bad when you compare it with last year.