Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Bye-bye bear... New S&P 500 bull market has legs - BofA

AuthorSenad Karaahmetovic
Published 06/09/2023, 08:37 AM
Updated 06/09/2023, 08:37 AM
© Reuters. Bye bye bear... New S&P 500 bull market has legs - BofA

S&P 500 officially entered a new bull market yesterday after spending 248 trading days in the bear market territory.

The bull market happens after the index rallies 20% from the recent low. The S&P 500 needed to cross $4292.44 to enter the bull market, which happened on Thursday.

After entering the bull market, the S&P 500 continued to rise over the next 12 months 92% of the time (vs. avg. 75% overall), returning 19% on average (vs. 9% avg. overall) based on data back to the 1950s, according to Bank of America's data.

“Sentiment, positioning, fundamentals and supply/demand support that being underinvested in stocks and cyclicals is still the key risk today –the more likely direction of surprise is still positive,” BofA strategists wrote in a note.

However, they warn that “the wall of worry could continue until investors feel pain in long bonds or FOMO in equities.”

They also warn that the S&P 500 trading at 20x is not the reason to be bearish.

“When earnings fall as they are today, P/E ratios expand. It’s just math,” the strategists concluded.

Latest comments

I think the rally is likely to be more short term with liquidity being drawn by the treasury out of the markets.
👍 not to mention that interest rates will be market friendly in the medium term which will add fuel to the party . The run up in the russel lin the past few days is encouraging also. Usually the russel smells interest rates cuts before other indices. Indices are a bit stretched ..any pull back or correction near term will be healthy to the overall picture
This kind of messaging is so wrong. Tricking retailers into the bobble before it burst 💥
RIP
PE Ratios are already highly overstretched. Unemployment is tight, credit card and national debt at all time highs. If the market does rise further from here get ready for a biggggggg fall come Q4 or Q1 2024. Right now the only thing really keeping the markets high are debt / excess money supply thanks to fed printing presses. But will also be why inflation is sticky and wont fall below 3% unless something breaks (can see it get sticky around 4%+ and  staying there forcing the Fed to react - yet right now market is still pricing in Fed Cuts during the summer....zero chance)
they have been buying when they keep call bear is coming.. after rising more than 20% they call bull market is coming so that they can unload their holdings and profit taking
That is what exactly happened even i had copy of all this fake news through time and every time the opposite of what they says happen
Yup .. sayonara Bear......hello balloon Bull.....
they been wrong for the last 5 years if not pretty much every year but we should trust them now?
Like Dwarf Legs?
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.