Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Have Stocks Bottomed?

By Capital.com (David Jones)Market OverviewAug 05, 2022 11:54AM ET
www.investing.com/analysis/have-stocks-bottomed-200628130
Have Stocks Bottomed?
By Capital.com (David Jones)   |  Aug 05, 2022 11:54AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

It has been another positive week for stock markets, with the S&P 500 pushing out to its best levels since early June. Of course, the index is still down by around 10% for the year to date, but this latest recovery will give investors some hope that perhaps a major bottom has been reached.

There have been recoveries along the way this year as no market moves up or down in a straight line. These have ultimately run out of steam, and the market has turned lower. But this recovery over the past couple of months is the longest bounce back in 2022 in terms of the time it has been in place, which could help bolster investors' confidence that stocks may be past the worst.

Last week there was much discussion about whether the US was in a technical recession or not because it has had two quarters of negative growth which is usually accepted as the recession definition. The US economy has been weak over the past six months, but interestingly that could also help the argument that stocks have bottomed.

Let’s not forget that markets are always looking forward - a bounce back by stocks may suggest that investors believe any economic downturn will be short-lived. The problems of high inflation do not appear to be going away anytime soon - but there is a chance that we could be past the worst.

This week's other focus was on the oil market, with a meeting of the oil-producing nations OPEC+. In the end, this was perhaps something of a damp squib, with the cartel agreeing to raise production by 100,000 barrels per day, widely considered negligible.

At the moment, oil is hovering around levels last seen in february this year - a good $35 below the highs seen in June. It is difficult in the short to medium term to see a reason why oil should suddenly soar again - perhaps a more stable oil price will be another factor to make investors somewhat more relaxed about the state of the world economy.

Disclaimer: This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors, not necessarily that of Capital.com or any of its affiliates, subsidiaries, officers, or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Past performance is no guarantee of future results.

Have Stocks Bottomed?
 

Related Articles

Craig Erlam
Week Ahead – Rate Hikes Keep Coming By Craig Erlam - Aug 12, 2022

Barring The Obvious Exception We may have entered into a typically slower time of year for financial markets but as last week showed, there really is no such thing in 2022 and I...

James Picerno
Has U.S. Inflation Peaked? By James Picerno - Aug 12, 2022

The latest inflation numbers for the US suggest that the recent surge in pricing pressure has peaked… maybe. The bigger risk is that consumer inflation remains elevated. If so,...

Have Stocks Bottomed?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
JIM VETTER
JIM VETTER Aug 06, 2022 9:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Art Carrano
Art Carrano Aug 05, 2022 1:13PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
June 16th.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email