Wall Street Veteran: U.S. Stocks may be at a Bear Market Turning Point

2022-09-11 0 By

Despite the stock market’s gains in the past few sessions after a terrible January, veteran Wall Street strategist David Roche warned that the recent volatility in the U.S. stock market may point to a bear market rather than a temporary slowdown in the ongoing bull market.”What we are seeing is not a blip in the bull market, but a turning point in the bear market,” Mr Roach said on Monday.He explained that “all the good things” that boosted the economy during the pandemic, such as government funding of household and corporate balance sheets, would “slowly withdraw”.At the same time, the former Global strategist and head of research at Morgan Stanley added that supply disruptions in the Labour market meant that workers’ incomes could not replace previous government subsidies.He also noted that the pursuit of insufficient assets by excess capital is a very important factor in driving financial markets.”There are very few people in the industry who can remember what a real bear market looks like,” he warns.People really just remember buying on the dips, and every time any market drops, the central bank’s pain threshold is quickly reached and the Fed reverses policy.”The strategist’s comments follow a turbulent January for global markets as investors grappled with issues ranging from the prospect of monetary tightening by major central banks such as the Us Federal Reserve to continuing geopolitical tensions between Russia and the West over Ukraine and fears of inflation.On Wall Street, the S&P 500 and the tech-heavy Nasdaq Composite index had their worst month since the COVID-19 outbreak in January.European stocks also had their worst month since October 2020.But while the S&P 500 and The Dow Jones Industrial Average fell 5.3 percent and 3.3 percent, respectively, in January, both indexes have risen for three straight sessions, with the Nasdaq, down 8.99 percent in January, rising in four of the past five sessions.New York (MARKEtwatch) — STOCKS ended higher on Tuesday in a choppy session that reflected investors’ uncertainty about how to make sense of the current market.With the recent volatility in U.S. stocks, the market’s views are beginning to diverge.The US stock market is expected to see a “violent” rebound in February after January’s sharp decline as investors return to the market with piles of cash, according to Tom Lee, founder of Fundstrat Global Advisor and former chief equity strategist at jpmorgan chase.This runs counter to Roach’s point.New energy vehicle development plan shows initial results. South Korea registered more than 100,000 electric vehicles for the first time last year. Related articles U.S. stocks rebound, which sectors have opportunities after the holiday?U.S. stock market close: out of the bad January three indexes continued to rebound recorded three consecutive Yang peripheral stock market hi, the U.S. stock rose 3 days in a row!A shares stable?Google pulled up 9%. What happened?A shares: the situation is A sudden change, at this time, the storm has passed?The post-World War II economic boom was accompanied by major changes in the stock market and an unprecedented bull market. Disclaimer: This article is reproduced for further information purposes.If the source is wrong or violated your legitimate rights and interests, please contact the author with proof of ownership, we will promptly correct, delete, thank you.Email address: newmedia@xxcb.cn