© Reuters. Bye bye bear… New S&P 500 bull market has legs – BofA
US500
+0.11%
Add to/Remove from Watchlist
Add to Watchlist
Add Position
Position added successfully to:
Please name your holdings portfolio
Type:
BUY
SELL
Date:
Amount:
Price
Point Value:
Leverage:
1:1
1:10
1:25
1:50
1:100
1:200
1:400
1:500
1:1000
Commission:
Create New Watchlist
Create
Create a new holdings portfolio
Add
Create
+ Add another position
Close
S&P 500 officially entered a new bull market yesterday after spending 248 trading days in the bear market territory.
The bull market happens after the index rallies 20% from the recent low. The S&P 500 needed to cross $4292.44 to enter the bull market, which happened on Thursday.
After entering the bull market, the S&P 500 continued to rise over the next 12 months 92% of the time (vs. avg. 75% overall), returning 19% on average (vs. 9% avg. overall) based on data back to the 1950s, according to Bank of America’s data.
“Sentiment, positioning, fundamentals and supply/demand support that being underinvested in stocks and cyclicals is still the key risk today –the more likely direction of surprise is still positive,” BofA strategists wrote in a note.
However, they warn that “the wall of worry could continue until investors feel pain in long bonds or FOMO in equities.”
They also warn that the S&P 500 trading at 20x is not the reason to be bearish.
“When earnings fall as they are today, P/E ratios expand. It’s just math,” the strategists concluded.
Source: Investing.com
