from the Federal Reserve, but according to BMO's Brian Belski, investors should start to prepare for a bull market return.
And there is precedent for the economy to avoid a recession entirely despite the sharp drop in stock prices, based on historical data., four of them did not coincide with or immediately precede a US recession. Those instances occurred in 1946, 1962, 1966, and 1987.has already occurred or does not even occur at all ," Belski said.
Since 1979, the average 10-year US Treasury yield is 5.8%, while the pre-financial crisis average is 7.6%. That's much higher than the current 10-year US Treasury yield of 3.96%. Stock market investors, therefore, do not need to be afraid of higher interest rates.As the stock market prepares to enter anew bull market, investors shouldn't return to the playbook that worked over the past decade: buying tech stocks.