The downturn we see on the stock exchanges around the world hurts many, but the end of the losses is near, and then the upturn begins. That’s the main idea in a new note Michael Hartnett, chief analyst at Bank of America, recently released.
If we look at the history, an average bear market lasts for around 290 days. This means that the downturn will end on 19 October 2022 and the S&P 500 will stand at 3,000 points, if we take the average stock market fall as our starting point.
– What follows is a bull market that lasts for an average of just over 5 years and gives a return of as much as 200 percent, Hartnett says.
– It is important to warn small savers against investing in Nel now, says Geir Linløkken in Investtech to Finansavisen.
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Stock fraud
Bank of America’s own bull-and-bear indicator has fallen as far as it can into what Hartnett describes as “counter bullish” territory.
The Bull-and-Bear indicator for Bank of America. Hit 0 in June 2022 when inflation took over. Bank of America
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Previously, the indicator hit zero in August 2002, July 2008 and March 2020, among others, according to Hartnett. Most of the previous times it has hit zero, the return three months ahead has been strong, but there are also examples of the fall having increased.
– It is difficult to position oneself, but you can take a taste when S&P goes past 3,600 and take a bit of 3,300, Hartnett says.
If the leading index on Wall Street reaches the 3,000 level, it’s wild.
– If that happens, it’s just a matter of fussing over shares, Hartnett says.
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