The stock market is in for a rough ride this 2015 because the market is beginning to panic due to its big decline. The large drop in crude that began last year has traders nervous. When the oil industry is weak, it makes people think hard about the global economy.
The stock market is by its very nature very volatile and subject to dramatic gains and losses. Periods of high gains are historically followed by setbacks which are to be expected as part of its normal cycle. Government forecasts and unexpected world events are likely to cause substantial shifts in market valuations. Once the market corrects itself, long-term investors are likely to see gains.
Yes, the stock market is in for a bumpy ride. The market has gone too high, too fast, without fundamentals to back it up. It will eventually go down, but in the meantime it will be up and down quite a bit as confused investors try to decide whether they want to buy or sell. It's time to fasten seat belts for a lot of ups and downs.
Oil is seesawing Wall Street, and is making people unsure about their retirement plans and investment returns in general. Although it is great that gas prices are low, it seems that Wall Street does not have a real answer as to how to react to this market change. I hope it all stabilizes in the end.