The stock market has been recovering lately as better-than-expected third-quarter earnings reports boosted investor sentiment. However, the overall economic backdrop remains unfavorable for the stock market.
“Our guess is that earnings will be good enough to keep the market in a trading range but not enough to send it back up to its midsummer high, and given the lagged nature of monetary policy, we would argue that time is not on the market’s side,” Michael Shaoul of Marketfield Asset Management said.
