But to keep advancing, stocks will need to surmount a lengthening list of anxieties simmering under the surface that threaten to curtail the year’s spectacular run.
“We’ve been in the camp that we’re overdue for a correction, something in the 5-10% range that is a buyable pullback,” said Cliff Hodge, chief investment officer at Cornerstone Wealth.
This may not be the week. Bespoke Investment Group has highlighted the prevalence of “turnaround Tuesdays,” observing that after Monday losses of 1.5% or more, the following trading session has “much more frequently led to gains of more than 1% than losses of more than 1%.”
Evergrande: Attention on Monday focused on Evergrande, the Chinese conglomerate battling a debt crisis. Should the company default on its massive liabilities, there are fears it could spark a “Lehman moment,” in which the collapse of a single entity ricochets throughout the financial system.