Stocks have often posted some of their biggest gains of the year in the midst of their worst selloffs. Some investors say the market’s roller-coaster ride as of late seems like a classic bear-market rally.
“All of a sudden, we’ve got elevated uncertainty on both valuations and earnings,” said Brad McMillan, chief investment officer at Commonwealth Financial Network. “It’s the deep uncertainty in both of the factors that literally we haven’t seen since the financial crisis.”
In his work as a financial adviser, Mr. McMillan said he has reduced equity positions for some clients in recent months because of elevated market volatility and the possibility that interest rates continue to rise. This year’s selloff has had one silver lining: It has left stocks looking cheaper than they have in some time. The S&P 500 traded late last week at 15.7 times its projected earnings over the next 12 months, down from 21.5 times at the end of last year, according to FactSet. And on Thursday, 175 stocks in the U.S. benchmark traded at new 52-week intraday lows, the highest number since the stock market’s mid-June low.
With stocks on sale, many investors are eager to get in at the ground floor of an eventual rally. That means they are focused on any sign of a development that would spark a turnaround—like when the Federal Reserve finally gets to the point of slowing or stopping its interest-rate increases. The trouble is identifying when exactly that move is happening. “Everybody wants to be first in line to call that pivot,” said Michael Cuggino, president and portfolio manager at the Permanent Portfolio Family of Funds. “If the Fed is near the end of its tightening cycle or it may pivot sometime soon, well let’s anticipate that, and the first sign that we see that happening, let’s jump in and buy.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
As bear market bites, crypto project vows to level the playing fieldThere’s long been talk about leveling the playing field between institutional and retail investors — and SingularityDAO says it’s prioritizing actions over words Sponsored
Read more »
Hong Kong’s Hang Seng Index Had a Makeover—Then the Market Got UglyHong Kong’s half-century-old stock-market benchmark has become a victim of poor market timing.
Read more »
U.S. stocks open higher as investors digest retail sales data, Wall Street earningsU.S. stocks opened higher Friday, as investors weighed data from the U.S. Census Bureau showing retail sales were flat last month as well as third-quarter...
Read more »
Weekend reads: The Federal Reserve gets a lot of flak for inflation, but it has actually hit its target recentlyAlso this week: The bond market's warning about the stock market; when to expect stocks to rebound; and good news for Social Security recipients.
Read more »
Stocks Drop After Wild Surge on Wall StreetU.S. stocks fell Friday, the latest U-turn for markets after a volatile week marked by big swings in both directions
Read more »
BTC Whales Create Genius Plan to Curb Losses, Analyst Says$BTC whales are hedging losses by peculiarly taking futures positions according to analytics platform cryptoquant_com
Read more »