Posted May 08, 2018 05:20:16In the aftermath of the stock market crash, Dow Jones’ performance has dropped dramatically, down about 7% this year to a record low of 4,819.19.
Dow’s worst loss since the Great Depression, it has also dropped more than 25% from its high of 8,923.53 last December.
In January, Dow fell by over 40% from January 2017, according to FactSet data.
“I don’t think it’s too early to say the Dow is on the way to the abyss,” said Robert Erikson, a senior fellow at the Peterson Institute for International Economics.
“The economy is slowing down, and stocks are getting lower, so I don’t see much hope for recovery.”
The Dow has been under pressure since December when Trump announced he would be withdrawing from the Trans-Pacific Partnership (TPP) trade agreement, a trade deal that would have allowed multinational corporations to challenge U.S. labor and environmental laws and undermine U.N. climate and health efforts.
Trump then took office, saying he would pursue a more pro-growth agenda.
The Dow has recovered somewhat from that initial drop, climbing more than 13% this month to a 3,903.66 high.
However, this is still well below the average gain of 11% that it experienced during the 2007-2009 financial crisis.
“It’s still too early,” said Eriks on how much the Dow could recover.
In fact, the Dow has more than tripled from January to February. “
But there’s plenty of reason to think it could come back stronger than it was during the financial crisis.”
In fact, the Dow has more than tripled from January to February.
It is now up more than 80% from the same period last year.
And its rise is largely driven by the gains in the tech and financial sectors.
“People have seen the gains that are coming from the tech sector and from tech stocks,” said Paul Ashworth, a financial analyst at RBC Capital Markets.
The Nasdaq, meanwhile, has bounced back from its worst start to date in 2019, when it lost more than 12% in 2017. “
A lot of people are now saying to themselves, ‘Well, the tech is good, but if the economy is going to get back on track, we’ve got to fix the economy, so let’s fix the tech,'” Ashworth added.
The Nasdaq, meanwhile, has bounced back from its worst start to date in 2019, when it lost more than 12% in 2017.
The index now is up 9.9% this quarter, up from a loss of 6.4% in the same quarter last year, and up more like 20% than it did in the previous year.
The Dow’s gain has also been driven by strong earnings gains for tech stocks, including Apple, Amazon, Facebook, Netflix, Microsoft and Google.
“The Nas was pretty weak when Trump came into office, and it’s getting stronger,” said Ben Leavitt, an analyst at the investment bank BMO Capital Markets in Toronto.
“If you look at the index’s trajectory, there’s no reason to expect that to change anytime soon.”
Leavitt added that investors should be watching the Nas and the S&P 500, the benchmark index that measures the performance of a broad group of stocks, “especially if they’re going to be on the upswing, as they’re both up, which is a strong sign.”
The S&s are also up a lot this quarter compared to last year when they were down about 5% from their highs.
But the S.P. 500, which tracks the Dow, is still down more than 4% from a year ago.
And while there’s still a lot to learn about the market, it’s “very likely” that the Dow will rise again, Leavick said.
For investors looking to invest in stocks, stocks that have a big upside potential should be a good place to start.
“There’s not a lot going on, and there’s nothing to suggest that the markets are going to crash or go down,” said Rana Mitter, a broker at Ritchey & Bieschke in New York.
“So if you can pick stocks that can take the pain of the economy and the bad news out of the way and be the catalyst of growth, that’s a good position to be in.”
For investors hoping for more upside, there are a few companies that are making an impression.
Amazon, which recently raised its price target for the company to $100 from $80, has been an inspiration.
“Amazon has done a really great job with its low-cost product line,” said Leavish.
“Their inventory is way down.
They’re very competitive in certain areas of the industry.”
Amazon is also a great place to pick stocks with potential upside.
For example, Microsoft’s Xbox One X has been one