In recent days, the stock market crash has been shaky with concerns about rising interest rates. The current SPY (S&P 500 ETF) price stands at 433. While some investors are feeling bearish, there are good reasons to believe the market could bounce back by the end of September. In this article, we’ll explore why investors might be too negative and why the stock market could still go up.
Why believe Stock Market Crash Turnaround?
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Strong Economy Can Stop Stock Market Crash
Despite worries about higher interest rates, the U.S. economy is doing well. The Gross Domestic Product (GDP) is growing, more people are finding jobs, and companies are making good profits. These are solid signs that suggest the stock market can thrive. In the past, even when interest rates went up, the stock market often did fine during times of economic growth.
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Inflation Might Not Be So Bad
People are worried about prices going up too fast, but sometimes these worries are exaggerated. The Federal Reserve is trying to control inflation carefully. As global supply chain problems get better and energy prices level off, the pressure for prices to keep rising may decrease.
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Earnings Season Could Surprise
Earnings season is about to start, and history shows that companies often do better than what experts predict. When companies beat expectations, it can make investors more confident and push stock prices up. If companies also say they’re optimistic about the future despite possible interest rate hikes, it could ease investor concerns.
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Think Long-Term
It’s essential to remember that the stock market crash can go up and down in the short term. However, when you look at it over many years, it generally goes up. It has a history of bouncing back after uncertain times.