by Chad Shoop
The Sovereign Investor
Much like Santa Claus, I came bearing a gift on Christmas Eve, advising you to sell the Santa Claus rally.
In the weeks that followed, the S&P 500 tumbled more than 10%.
While I’m a bit late to be the Easter Bunny, I have another gift today: Sell the first-quarter stock market rally.
Since bottoming on February 11, the S&P 500 has rallied more than 10%, but it has done so with false hope. Investors are speculating that the U.S. economy is rebounding due to stabilizing oil prices and a reversal in the dollar. Because of this, many investors are expecting first-quarter earnings to top expectations.