Stock Market Suggests a Rhyme from the 1990s

Share Article

Don Hays of Hays Advisory, a Brentwood TN-based investment firm, suggests that the stock market is shaping up to mimic the rhyme of the mid-1990s.

News Image
"This is still a very powerful bull market." - Don Hays

According to Don Hays, founder of Hays Advisory, “These are unique times in American history…but really, aren’t they all?” Looking to the past, he currently sees a strikingly familiar market shaping up following the recent mid-term elections, similar to the stock market that we saw following the mid-term election in 1994, which led Bill Clinton to take on a more moderate approach to his future policies.

Furthermore, in a recent video update, Don highlights that the market broke out following the recent mid-term election with a significant rally, and is now experiencing a pause similar to the one that took place in the market in mid-1995. However, this lesson from the past isn’t the only variable supporting Don’s thesis.

Hays Advisory’s Asset Allocation Model is also suggesting that the market currently has significant long-term upside potential. According to the monetary liquidity in the market, along with the extremely undervalued position of stocks, Don sees strong positive future returns for long-term investors. However, there is one fly in the ointment at this time: investor psychology. Before resuming its upward move, Don would like to see a “pause-to-refresh” in the market to let out a little of the steam built up by the recent rally.

Yet, while many are currently questioning the potential for the stock market following its quick rise off the bottom in March 2009, Don remains strong in his position as his indicators align on the bullish side. Overall he concludes, “This is still a very powerful bull market.”

About Hays Advisory, LLC

Hays Advisory produces stock market and economic analysis for individual and institutional clients that is both widely followed and internationally recognized. Subscribers may gain insight from our disciplined, unemotional approach and a better understanding of the factors we believe are driving long-term market trends.

Based in Brentwood, Tenn., Hays Advisory invests for the long-term. Founded in 1999, this independent, employee-owned investment firm manages portfolios for both individual and institutional clients.

Hays Advisory’s strategy is to take advantage of opportunities at major market turning points. Because market expectations are often wrong at or near these turning points, emotional decision-making can lead to investor underperformance. Using a tactical asset allocation model, Hays’ strategy attempts to remove emotion from the investment process.

###

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Hays Advisory, LLC

(800) 789-2194
Email >
Visit website