PLAY - 2 Things to Do If the Stock Market Rises This Month
The stock market plunged into a bear market at the fastest pace in history earlier this year, but since the March lows it's been an impressive rally. June was the third consecutive month of gains in the S&P 500, and the benchmark index is entering the second half of the year 39% higher than it was in late March. That's a very impressive rally in just over three months.
However, we're still a long way from even, especially in some of the harder-hit areas of the market. Banks, hospitality stocks, and retail are three examples where valuations remain depressed. If the recent spike in COVID-19 cases is brought under control and the economy continues on the path to a V-shaped recovery, it could certainly result in another leg up in the so-called "reopening stocks."
And, while tech stocks -- especially some of those who gained customers and market share during the pandemic -- are now at all-time highs in many cases, that doesn't mean they've run out of steam. Keep in mind that July also brings the start of second-quarter earnings season, and better-than-expected results could also be a positive catalyst.