Earnings, Buybacks Save Market From Deeper Correction Amid Dwindling Sentiment

  • 📰 Investingcom
  • ⏱ Reading Time:
  • 39 sec. here
  • 5 min. at publisher
  • 📊 Quality Score:
  • News: 29%
  • Publisher: 53%

S&P 500 News

Microsoft Corporation,Alphabet Inc Class A,Alphabet Inc Class C

Stocks Analysis by Lance Roberts covering: S&P 500, Microsoft Corporation, Alphabet Inc Class A, Alphabet Inc Class C. Read Lance Roberts's latest article on Investing.com

Over the last two weeks, the bullish sentiment index has reversed from extreme greed to fear. The composite net bullish sentiment index, comprised of professional and retail investors, fell from 38.15 to 9.9 in two weeks. The previous drop between July and October last year was similar and marked the bottom of theBuyers will become more scarce as they refuse to pay a higher price. When sellers realize the change, they will rush to sell to a diminishing pool of buyers.

Very quickly, as supported by the bullish sentiment index, those bulls are turning bearish and are now calling for a more profound decline. While such is possible, I suspect most of this correction is complete for two reasons., in particular, exceeded estimates by a wide margin. However, overall, and most importantly, earnings growth has continued since the October lows of 2022.

“Notably, since 2009, and accelerating starting in 2012, the percentage change in buybacks has far outstripped the increase in asset prices. As we will discuss, it is more than just a casual correlation, and the upcoming blackout window may be more critical to the rally than many think.”of corporate buybacks coincided with more extreme readings in the bullish sentiment index.

 

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 NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

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

Strong Employment Data Might Not Reflect the Job Market's RealityMarket Overview Analysis by Lance Roberts covering: Alphabet Inc Class A, Alphabet Inc Class C. Read Lance Roberts's latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »

Market Corrections Matter More Than You ThinkMarket Overview Analysis by Lance Roberts covering: S&P 500. Read Lance Roberts's latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »

Surging Stock Market Still Fails to Yield Wealth Growth for Average AmericansMarket Overview Analysis by Lance Roberts covering: . Read Lance Roberts's latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »

Alphabet Earnings: Can Cloud, AI Progress Make Up for Massive Ad Revenue Slowdown?Stocks Analysis by Investing.com (David Wagner) covering: Alphabet Inc Class A, Alphabet Inc Class C. Read Investing.com (David Wagner)'s latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »