Bears may still be lurking
NEW YORK — With decent monthly gains in stocks countering traditional expectations for May, when as the saying goes, investors tend to sell and go away, a tired market now might be positioned to give back some gains, some analysts believe.
"I’m having a good year so far, but I don’t want to give it back," said Paul Mendelsohn, chief investment strategist at Windham Financial Services. "In June, we normally see less volumes, and the market is basing a lot of hopes on an economic recovery."
The broad market, as defined by the Standard & Poor’s 500 index, gained 5.3 percent in May. The Dow Jones industrial average was up 4 percent for the month, while the Nasdaq Composite gained 3 faxless payday loans.3 percent. May was just the latest in a run of monthly gains. The S&P 500 has rallied more than 36 percent since hitting lows in early March.
"Granted, at the beginning of new bull markets investors are driven more by faith than fundamentals," wrote Sam Stovall, senior investment strategist at Standard & Poor’s, in a note. "But a skeptic might now say that as a result of this recent strength we are due for a swoon in June."