Perfect contrarian indicator? Jim Cramer declares the bear market is over

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 52 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 97%

Business News News

Business Business Latest News,Business Business Headlines

The stock market has climbed a pretty sizeable wall of worry over the last two weeks -- but now it faces the ultimate test.

The stock market has climbed a pretty sizeable wall of worry over the last two weeks, with the S&P 500 rising 8% during a period of continued war in Ukraine and Federal Reserve rate hikes.“There are 600 companies that came public in the last 18 months. There’s... The stock market has climbed a pretty sizeable wall of worry over the last two weeks, with the S&P 500 rising 8% during a period of continued war in Ukraine and Federal Reserve rate hikes.

“You remember those days, those companies were all jokes,” he continued. “I’m looking at all the companies under $10, many of them are actually making money. We are in some weird market, that is a bear market, and that no one called it as a bear. And I think the bear market is over.” So, that’s a lot to unpack. The generally acccepted definition of a bear market is one where prices have dropped 20% or more from a recent high. That occurred first in the small-cap Russell 2000 RUT , and then the tech heavy Nasdaq Composite COMP , though not the S&P 500 SPX .

Cramer’s reference to stocks under $10 is a reference to special purpose acquisition companies, that are typically priced at that level. According to Tuttle Capital Management, there were 613 SPAC IPOs last year, and another 52 so far this year. Companies that de-SPACed — that is, merged with a target — have seen an average return of -33.7%, according to the Tuttle data.U.S. stock futures ES00 NQ00 were indeed a little bit weaker on Monday.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Bear stearns is fine!- Jim Cramer

Everyones a lazy azz thats sits around and pushes buttons to make a living. All a bull market needs is volume.

Is he corrupt? Honest question.

Pretty much

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in BUSİNESS

Business Business Latest News, Business Business Headlines