It’s around 14 weeks until the end of this year and history said 2015 was supposed to be a good year for stocks, however, we started at 5411 on the S&P/ASX 200 index and we’re now at 5140, so we’re down 5%! But it wasn’t always bad news, as on March 3, we were up 10.8%! So what happened and is there likely to be a turnaround before we start popping champagne on New Year’s Eve?
And given the Fed’s decision not to raise interest rates in September, does this help or harm the chances of stocks going up over the next two and a half months?
From my point of view, I was hoping the US central bank would raise its official interest rate, stocks would sell off for a short time, then value chasers would return to the market and long-term investors would focus on a US economy heading up. Wall Street would head up, we would follow suit and the usual December stock market rebound — the so-called Santa Claus rally — for us would kick in, and that often rolls into January and February.