Strome Business Minute With Dr. Jeff Tanner

April was actually a pretty good month for the stock market and May hasn’t been so bad either. A question, though, is whether the rally has been justified. Kelly Bogdanova, a leading analyst for RBC, says yes, well, sort of. She didn’t use this term but over the years, I’ve developed what I call the pendulum theory, meaning that the psychology of the market causes it to overswing in either direction. So she says that earnings have justified a rally but one not quite as big as what we’ve seen. She also cautions buyers to remember that they are buying future earnings and she is predicting a long recovery. You can observe the pendulum effect with individual stocks as well as sectors or, as is the case now, the full market, and that creates opportunity. To learn more, visit odu.edu/business. This Strome Business Minute is presented by the Strome College of Business at Old Dominion University.