The U.S. stock market experienced a milder bear market in 2022 compared to historical bear markets, with a decline of 25% from its prior high, and history suggests that a new bull market is likely to follow soon.
Global stock markets are expected to experience a correction in the coming months, although analysts predict marginal gains by the end of 2023, as concerns about underperformance persist and money market rates overshadow the appeal of equities.
Contrary to widespread concern of a stock market crash, the probability of a crash as severe as 1987 in the coming months is actually very small, with a mere 0.33% chance, according to a study conducted by Harvard and Boston University researchers, revealing the increasing pessimism bias among investors following recent losses stemming from two bear markets in a short period, while also suggesting that Shiller's crash-confidence index serves as a useful contrarian indicator.
Market optimism around the US economy may decline as recent shifts in the Treasury yield curve indicate a potential trigger for a correction or rapid unwind in positions, with investors closely watching Federal Reserve Chair Jerome Powell's upcoming speech.
The recent market pullback has investors questioning if it's the start of a bear market or just a correction, but it's important to recognize that markets are inherently uncertain, and focusing on long-term goals and factors we can control is key to success in investing.
There is a possibility that digital assets may not witness another bull market, according to a crypto strategist who is growing skeptical of the market's potential for a bullish reversal this time around, citing a lack of real-world use cases and the failure to deliver on promises. However, another investor remains confident that a crypto bull market is coming, predicting a potential decline in prices before a new bull market begins.
The fundamentals and technicals support a demographically driven bull market in stocks until 2034, but potential risks include inflation, interest rate-induced debt crisis, and refinancing problems, which could lead to a drop in the stock market. Comparing the S&P 500's score in August 2023 to historical patterns, the market seems confident and not indicating an imminent debt crisis or severe recession. Credit spreads also appear tame compared to previous crisis periods. However, the article notes the possibility of abrupt changes in the market and encourages openness to a wide range of outcomes.
Bitcoin bulls may be disappointed as a monthly technical indicator suggests a weakening of upward momentum, potentially leading to a long and drawn-out basing process.
Despite weak economic news and concern over a slowing economy, there is still optimism among investors that a recession is unlikely.
Wall Street strategists are cautiously optimistic that investors can find returns through the rest of the year and beyond, despite the recent rough month for stock markets, with valuations looking less stretched and opportunities in strong balance sheet tech.
Economist David Rosenberg warns that there could be a repeat of last year's stock market decline due to mounting risks, including downgrades by Fitch and Moody's, Chinese deflation, and an overvalued S&P 500.
Investors are becoming increasingly cautious about the US stock market and the economy as 2023 draws to a close, leading to a more defensive investment approach by Wall Street banks and experts warning of potential pain ahead.
A majority of Wall Street investors are concerned about the stock market's gains in 2023 and believe that it could retreat further as the risk for a recession increases.
Investors are concerned about the recent drop in the stock market, but HSBC strategists suggest that there is still potential for an upside surprise due to growth remaining resilient and low expectations for positive surprises.
Investors should be cautious as signs of a potential market downturn continue to emerge, with narrowing market breadth, worsening market sentiment, surging Treasury yields, climbing oil prices, and a hefty revision of consumer spending revealing a decrease in spending that could impact economic growth.
The author discusses the 2024 stock market outlook, including the bull vs. bear debate, the S&P 500's potential performance, and top stock picks for the year.
The recent two-week selloff in the stock market confirms a weak market and raises the possibility of new lows, indicating that the so-called bull market was just a rebound and the next bull market will be driven by different factors. Investors should focus on traditional fundamentals and cash reserves rather than poor investments.
Crypto strategist predicts that Bitcoin will enter a massive bull run and reach new all-time highs once it surpasses a key support level, but warns that bearish speculation from the stock market could decrease momentum.
The recent stock market pullback accompanied by a Treasury market rout has left investors increasingly pessimistic, but extreme pessimism could potentially lead to strong stock-market gains in the future, depending on how the situation resolves.
The S&P 500 has entered a bull market, marking a rise of 20% or more from its recent low, with hopes that the economy will continue to defy predictions of a recession caused by high inflation and aggressive measures taken by the Federal Reserve. However, concerns remain as the Fed is expected to continue hiking interest rates and the gains in the market have mainly been driven by a small group of stocks, raising sustainability concerns. Bull markets typically last around 5 years with gains of 177.8%, while the previous bull market lasted 21 months and the current one began on Oct. 13, 2022. The recent bear market ended on Oct. 12, 2022, with a duration of nine months and a drop of 25.4%.
The S&P 500 bull market celebrated its first year, but with relatively weak performance compared to historical data, there is potential for solid gains in 2024, especially considering the strong second year performance typically observed, as well as the potential seasonal tailwind of an election year.
Bitcoin's recent correction and fear dominating the market have led to decreased optimism among investors, as indicated by BTC derivatives metrics, suggesting a slim chance of the price breaking above $28,000 in the short term.
Being optimistic in the stock market can lead to biased decision-making and increased risk, resulting in potential losses for investors.
Investors hoping for a revival in the S&P 500 due to U.S. corporate earnings growth may be disappointed as inflation remains volatile, according to strategists at BlackRock Investment Institute.
The current market correction is causing uncertainty about whether we are still in a bull market or entering a bear market, but historical data suggests that the bull market is not over and a correction is to be expected.