CHAPEL HILL, N.C.–The next bear market on Wall Street could very well take place even without a recession.
I refer to it and similar major declines as “valuation bear markets” because one of their distinguishing characteristics is a big reset in the valuations that investors are willing to put on stocks. Corporate profits continue to grow, but investors aren’t willing to place as high a valuation on each dollar of those profits.
How likely is it that the next major decline will be a valuation bear market? Consider all bear markets since 1900 in the calendar maintained by Ned Davis Research—38 in all. No fewer than 13 of them—34%—did not occur in proximity to a recession in the calendar maintained by the National Bureau of Economic Research, the semi-official arbiter of when U.S. recessions begin and end.
Note carefully that the “declines” I am referring to are those incurred by the major market averages, such as the S&P 500 index SPX, -0.30%, the Dow Jones Industrial Average DJIA, -0.57% and the Nasdaq Composite COMP, +0.09%.
NIRP
Charging for articles now?
इंडिया ताज़ा खबर, इंडिया मुख्य बातें
Similar News:आप इससे मिलती-जुलती खबरें भी पढ़ सकते हैं जिन्हें हमने अन्य समाचार स्रोतों से एकत्र किया है।
GameStop stock surge could be upending the stock market, Fundstrat saysThis week's GameStop surge could be upending the stock market as it leads hedge funds to reduce leverage, Fundstrat's Tom Lee says
स्रोत: BusinessInsider - 🏆 729. / 51 और पढो »