The Charging Bull statue, also known as the Wall St. Bull, is pictured in the financial district in the Manhattan borough of New York City, New York, US, on Sept 9, 2020.The US stock market's rebound in recent weeks has analysts and investors questioning whether 2022's deep downturn has ended, but how to spot an expiring bear market or a new bull market is not something everyone on Wall Street agrees on.
The recent gains led analysts at Bespoke Investment Group to declare on Thursday morning the Nasdaq had exited its recent bear market, even though the index remains down about 21 per cent from its record high close last November, with trillions of dollars in stock market value still lost. The Merriam-Webster dictionary defines a bull market simply as "a market in which securities or commodities are persistently rising in value."
The Securities and Exchange Commission says on its website that, "Generally, a bull market occurs when there is a rise of 20 per cent or more in a broad market index over at least a two-month period." Analysts warn against relying too much on backward-looking definitions of market cycles that do little to capture current sentiment or predict where stocks will go in the future.
Bull Bear Trap 😀