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Is the bear market over yet?

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The recovery rally continues. Stock markets have made a remarkable recovery in recent weeks despite all the geopolitical headwinds. Is the worst already behind us for investors?

Wall Street: The market looks ahead (Photo: REUTERS/Caitlin Ochs)

It’s been a tough four months. In November and December of last year, the US Federal Reserve made it known that the reversal in interest rates would be surprisingly faster and more extensive than expected due to mounting inflationary pressure. The markets were also a diving station.

In January, the world political situation darkened; The world has changed since the Russian war of aggression in Ukraine that began on February 24. However, normality is returning to the capital markets after the initial shock. Of course, the major indices have remained in the red since the beginning of the year in the face of numerous headwinds, but price losses have melted away considerably.

First quarter with contained price losses

A few days before the end of the first quarter, the Dow Jones and S&P 500 were only down 4 percent, the tech-heavy Nasdaq 100 losing nearly 10 percent of its value, as much as Germany’s main Dax index.

Just two weeks ago, both the Dax and the Nasdaq tech market fell more than 20 percent over a short period of time and were therefore in a bear market. The comeback is even more remarkable for individual stocks: Apple, for example, is up 16 percent in the past two weeks, Amazon up 22 percent and chipmaker Nvidia up 30 percent.

Stock Market Guru James Cramer: “The Bear Market Is Over”

“We had a tsunami of bad news for stocks,” former Goldman Sachs CEO Lloyd Blankfein said on Twitter. “Incredibly high inflation, Fed (US Federal Reserve) tightening of monetary policy, rising long-term interest rates, shortages of basic goods, war, trade sanctions, increase in new infections by coronavirus etc. the market has mostly held up under the circumstances (holding up well).

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While Blankfein calls the stock market’s resilience “somewhat bullish…”, CNBC market commentator James Cramer goes a step further and mentions the worst that has already happened on Wall Street.

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“The bear market is over,” the former hedge fund manager told financial broadcaster CNBC on Friday, a statement that some market watchers like wealth manager James DePorre seem a bit premature.

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Cramer: Big Tech stocks are attractive

Meanwhile, James Cramer sees big tech stocks in particular as promising in the challenging trading environment of the coming months. Apple is attractive to the ubiquitous market commentator, not least because of the possible launch of a new subscription service, which could also include hardware products like the iPhone. “That would show Wall Street that the stock was worth a lot more than it is currently being paid for,” Cramer said.

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With Amazon, Google parent Alphabet, Netflix, and even Facebook parent company Meta recently collapsing, Cramer has all the so-called FAANG (Facebook, Apple, Amazon, Netflix, and Google) values ​​on his to-do list. Recommendations However, the now 67-year-old advises waiting for the next bearish move after the strong rally of the last few weeks before buying.

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“When analysts deem FAANG stock untradable, that’s the perfect time to buy,” says the Mad Money host. The market may well give investors a second chance if the news gets cloudy again…

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