Stock market crashes since 1870 show 2020 bear rally is doomed: SocGen - Business Insider

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 45 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 51%

United Kingdom News News

United Kingdom United Kingdom Latest News,United Kingdom United Kingdom Headlines

'Beware of the oddity': A Wall Street firm studied every market crash over the last 150 years to reveal how abnormal this one is — and concluded that stocks are doomed for another fall

for stocks since 1987. But this stand-out performance is not being universally cheered on Wall Street. 's 13% ascent last month can be traced back to its bottom on March 23 — the same day the Federal Reserve essentially pledged to do whatever it takes to support the economy during the coronavirus pandemic.

His study of bear markets since 1870 led him to conclude that the S&P 500 would finish the year at about 2,715, representing a 7% decline from its April close.Lapthorne's analysis started by including episodes since 1870 when the S&P 500's decline could ostensibly have been rounded up to 20%. One recent example was the late-2018 sell-off that winded up as a 19.6% decline.bear market was not empirically ideal.

He found that on average, the S&P 500 recovered by 4% within a month, 13% within three months, and 27% within a year. The typical trajectory of recoveries is similar even when the Great Depression, often likened to the coronavirus crisis, is included.The brisk rally of 2020 cannot be divorced from the record amount of government stimulus that flowed into the economy. On this account, Lapthorne said the market's roaring comeback is reasonable.

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:

 /  🏆 729. in UK
 

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

I feel same too... October/November 2020.

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

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

Stock market crash: Buying power will run out in one week, Normura says - Business Insider'Brace for selling': A Wall Street quant strategist warns that stock-market buying power could evaporate just one week from now — opening the floodgates for a 'sell in May' episode Click bate
Source: BusinessInsider - 🏆 729. / 51 Read more »

Elon Musk is selling 'almost all' belongings, Tesla stock 'too high' - Business InsiderElon Musk declared that he's selling 'almost all' of his physical belongings and 'will own no house,' and that Tesla's stock price is 'too high' He runs engineering sweatshops. Another classic Elon Musk using drugs tweet maybe hacked.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Stock market news today: Dow sinks sharply after Trump threatens China with tariffs over coronavirus - CNNUS stocks open lower after President Trump hints that there could be new tariffs imposed on China as a result of the Covid-19 outbreak TL;DR: Trump will be charging Americans more of what they already don’t have enough of, so he can feel important That will probably help mortgage rates again. Well his buddies that were short on the market just got rich off a nothing burger sound byte
Source: cnnbrk - 🏆 393. / 55 Read more »

Stock market live updates: Futures fall, Amazon drops 5%, sell in May?On Thursday, Wall Street finished out its biggest month in over 30 years. Stop creating panic in the market By the end of May you’ll wish you had already sold. Why when you can't go away...
Source: CNBC - 🏆 12. / 72 Read more »