1/17/2024 0 Comments Market euphoria meaningSome bear markets have experienced declines in excess of 80% before recovering. To paraphrase Warren Buffett, ‘Be greedy when others are fearful, and be fearful when others are greedy.’ A bear market in equities is defined as a loss of at least 20%. While the current stock market rally may continue for some time, it is not too early to identify the warning signs that may tip the onset of the next bear market. Since that time, we have been experiencing one of the sharpest stock market rallies in history. ![]() Eight days later the steepest stock market descent in history began, with the S&P 500 Index falling 34% during a five-week period. At that time, the prospect of a bear market seemed distant. stock prices were also at all-time highs and climbing daily to new records. On February 11, 2020, we published a paper titled “The Next Bear Market” while U.S. Animal spirits are running hotter now than during the last market peak just before the coronavirus-induced lockdowns began. Speculative “story” stocks, penny stocks, IPOs, SPACs, millennial “stonk” trading, margin lending, CCC junk bonds, sports trading cards and other collectibles, Dogecoins and investor sentiment surveys are all showcasing extreme market froth. “When life looks like Easy Street, there is danger at your door.” This article was originally published on .īy Stephen Cucciaro, President & Chief Investment Officer
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