2006 Stock Market Outlook

BY Eric L. Prentis

Now is a good time to be invested in the U.S. stock market. (PRWEB) November 17, 2005 -- Now is a good time to be invested in the U.S. stock market which is in Stage 3: Mark-Up %26#8211; Uptrend. Since March, 2003, the long-term market trend is upward. The market is approximately 43%25 undervalued. Using earnings estimates for 2006, the projected target of the Standard %26 Poor%26#8217;s 500 Index for January, 2007 is 1,721. Political-economic conditions are overall favorable, but political conditions are restraining the stock market%26#8217;s advance. Fiscal policy, i.e., record high budget deficits over the past three years, and monetary policy, i.e., the Federal Reserves raising the federal funds interest rate, are negative for the stock market. The interest rate yield curve is flat which is neutral for the stock market. The 3-month Treasury Bill and 30-year Treasury Bond yield spread is less than one percent which usually occurs late in an upward trending market during Stage 3. No one can say with certainty what the future holds for the U.S. stock market; however, overall indicators point to a market where money can be made by investing at this time. Eric L. Prentis is the author of The Astute Investor ISBN 0-9759660-0-6, visit www.theastuteinvestor.net to signup for a free quarterly e-newsletter. ###

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