Posted on 05/09/2022 9:13:02 AM PDT by Signalman
US stocks have further to fall even after a steep decline this week, Bank of America said Friday. The Nasdaq this week fell 5% in one session as investors grapple with tighter Fed monetary policy. Based on previous bear markets, the bank foresees the decline in stocks ending in October 2022. The S&P 500's massive selloff during the week deepened this year's correction for the broad index, and it's likely to sink even lowers before finding a bottom and rebounding, according to Bank of America.
The S&P 500 so far this year is in a correction, down 14% from its all-time high of 4,818.62 notched on January 4.
The bank's chief investment strategist in a note Friday said investors will spend much of 2022 working through inflation, rates and recession shocks that should result in negative and volatile returns in absolute terms.
"Past performance no guide to future performance, but if it were, today's bear market ends Oct 19th 2022 with S&P 500 at 3,000, Nasdaq at 10,000," Michael Hartnett, chief investment strategist at Bank of America Global Research, wrote in the weekly "Flow Show" note.
The S&P 500 would need to fall about 28% to hit 3,000 and the Nasdaq would have to drop by another 18% to reach 10,000, each from Thursday's close.
(Excerpt) Read more at msn.com ...
A lot of nest eggs are on fire.
Socks go down bonds go up! Uh, well, um...
“It’s the Worst Bond Market Since 1842. That’s the Good News.”
So everything is tanking. Let’s go Brandon!
"Say It! 'I Lost the Nest Egg!'"
I’m not worried. Biden’s Ministry of Truth will outlaw all bad economic news. Then everything will be okay.
Perfect! This is it. Buy high and sell low.
The market needs a major reset. A great deal of excess has been priced into the market and P/E ratios on an inflation adjusted basis (see Shiller PE) would still be too high after another 30% drop. Based on inflation adjusted PE, market was just at its 2nd all time high valuation topped only by the excess of the dot com bubble.
“only” 28% would be the good news...…
Lost in America. Great movie.
Working in Retirement? Here’s Why That’s Great... and …
https://www.fool.com/investing/2022/05/08/working...
Well, I didn’t get out soon enough. Just need to ride it out and hope for better days.
Good. I have some cash lying in wait and will soon be getting a small inheritance. I was lucky enough to be in the same situation right as the COVID market pants pooping happened. It turned out very lucrative. Buy low, sell high.
It’s all Putin’s fault. We get rid of him and everything will be fine.
/sarc
A lot of self-defenestrations are going to happen.
The Defenestration Of Progs...................
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