Houston News

 

Wall Street Records May Be Misleading

Wall Street Records May Be Misleading

With Wall Street setting new records nearly every day, you'd think that means the U.S. economy is growing by leaps and bounds.  Not so. 

 

KTRH Money Man Pat Shinn says the stock market is experiencing what is called a divergence.  He says all of the gains are being driven by the huge companies in the market, like Exxon and Apple.

 

“Since March 4,” Shinn says, “the largest company stocks are up about four or five percent, while the rest of the market is slightly negative.”

 

He says the big guys are driving the market gains.

 

“The rest of the market, mid-sized and smaller-sized company stocks, are not hitting new highs,” he says.  “That's what is called a divergence and normally it's the sign of a market due for a rest.”

 

Shinn doesn't expect a market collapse.  He says we're seeing a rotating correction -- where different segments of the economy take turns taking losses, or gains.

 

 

More Articles