Where is the Market Going Next?

  • Souders Financial Group

A popular question we receive in review meetings is “where is the stock market going next?” We do not have a crystal ball, and to be frank, your guess might be as good as ours in the short term. We offer a long term answer to that question, which is: in the direction of corporate earnings! The chart below illustrates that the stock market’s performance moves over the long term with the direction of corporate earnings (which are a product of the economy and economic growth). With social media and 24/7 news coverage, it can be easy to get caught up in headlines and stories that can move the market in the short term. But taking a long term view of investing simplifies the practice to what is essential to the growth of investments, earnings. To quote legendary investor Ben Graham, "In the short run the market is a voting machine. In the long run, it's a weighing machine."

For informational purposes only. Not intended as legal, tax, or investment advice, or a recommendation of any particular security or strategy. Please contact your legal or tax professional for more information regarding your individual circumstances. Information prepared from third-party sources is believed to be reliable though its accuracy is not guaranteed. Opinions expressed in the above commentary reflect subjective judgments of the author based on conditions at the time of writing and are subject to change without notice. Past performance is not indicative of future results. For more information about Souders Financial Advisors, including our Form ADV Part 2A Brochure, please visit or contact us at 513-598-2400.