The markets surged higher Monday, posting their first two-day winning streak all month. And while some investors may be worried that last week’s sell-off may resume, one analyst argues that fundamentals are strong.
“In 2017, earnings were growing at about 10 percent year-over-year in the United States,” said Lance Humphrey, executive director of Global Multi-Assets at USAA. “Places like Japan, emerging markets, Europe are up over 20 percent...And we’re not seeing any slowdown when we look at expectations for Q1 or even for 2018.”
His statements come after the Dow Industrials index soared 410 points, after posting its biggest weekly loss in two years. Last week the average posted two 1,000-point drops, the biggest ever in history, before rebounding on Friday.
That volatility put some traders on edge, but Humphrey says his clients are investing for the long term.
“We’re not seeing a lot of strong activity one way or the other as far as heavy buying or selling,” he said.
The Dow has rallied more than 5 percent off its lows Friday afternoon. But even with two days of big gains, the index is still more than 7 percent below its all-time highs hit just over two weeks ago.
For full interview click here.