Beware the Fear-Mongering Headlines: A Stock Market Meltdown Isn't Imminent

  • 📰 Investingcom
  • ⏱ Reading Time:
  • 79 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 35%
  • Publisher: 53%

Ireland News News

Ireland Ireland Latest News,Ireland Ireland Headlines

Stocks Analysis by Investing.com (Calogero Selvaggio) covering: S&P 500, US Small Cap 2000, US Dollar Index Futures, Invesco S&P 500® Equal Weight ETF. Read Investing.com (Calogero Selvaggio)'s latest article on Investing.com

Meanwhile, the S&P 500 has retained its long-term bullish trend despite occasional setbacks like the recent retracement

This begs for a closer examination of stock market returns over the past decade to gain a more balanced perspective on the prevailing situation.has exhibited remarkable growth, surging by more than 200% at an average annual rate exceeding 10%. However, this journey hasn't been without its share of setbacks.The global pandemic triggered a swift 34% decline in just over a month, and we witnessed another 25% dip last year due to the inflationary climate.

Stocks tend to consistently yield significant gains in the long term. To achieve long-term investing success, it's crucial not to be swayed by perpetual predictions of impending crashes. Over a decade, the stock market has risen about 97% of the time, and year-to-year, it has climbed 75% of the time.In addition, the inverted yield curve that brought panic to the markets, heralding an economic recession for over a year, has in recent weeks reached new annual highs making its way back toward the parity level, flattening out.Inflation expectations, as gauged by the ratio of TIPs to IEFs , are on the rise, akin to the patterns observed during the initial Fed rate hike in 2022.

Conversely, when we examine the ratio of Value to small-cap Growth, historical trends reveal that Values tend to outperform Growths during periods of rising 10-year U.S. yields. It appears that this trend is resurfacing once again.Around three months have passed since the onset of the stock market correction. Currently, the indicators appear to be mixed but do not point to an imminent market meltdown.

 

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

 /  🏆 450. in İE

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

‘Buy the Dip’ Investing Mantra Lives On—in the Bond Market at LeastInvestors this year have poured $21 billion into TLT, BlackRock’s long-dated Treasury fund, despite punishing decline in its shares
Source: WSJ - 🏆 98. / 63 Read more »