Market Predictions 2022: When Will Stocks Go Back Up?
This article is excerpted from Tom Yeung’s Profit Protection newsletter dated July 19, 2022. To make sure you don’t miss any of Tom’s picks, subscribe to his mailing list here . In 1881, the U.S. stock market suffered one of the most severe bear markets on record. By the end of the four-year pullback, shares of the US 100 index had declined by 34.6% — more than during the 2000 tech bubble (or my life expectancy when I was teaching my sister to drive). The Panic of 1884 was a unique bear market. Railways and steelmaking dominated the U.S. economy; the market pullback directly resulted from overinvestment in capital goods in the post-Reconstruction era. Yet Wall Street strategists consistently rely on historical data to guide their forecasts, no matter how irrelevant the figures become. Earlier this month, analysts at Deutsche Bank pointed out that historical data suggest that the market usually rallies during earnings season after a selloff. In other words, they’re predicting a rally in August.
Market Predictions 2022: When Will Stocks Go Back Up?
This article is excerpted from Tom Yeung’s Profit Protection newsletter dated July 19, 2022. To make sure you don’t miss any of Tom’s picks, subscribe to his mailing list here . In 1881, the U.S. stock market suffered one of the most severe bear markets on record. By the end of the four-year pullback, shares of the US 100 index had declined by 34.6% — more than during the 2000 tech bubble (or my life expectancy when I was teaching my sister to drive). The Panic of 1884 was a unique bear market. Railways and steelmaking dominated the U.S. economy; the market pullback directly resulted from overinvestment in capital goods in the post-Reconstruction era. Yet Wall Street strategists consistently rely on historical data to guide their forecasts, no matter how irrelevant the figures become. Earlier this month, analysts at Deutsche Bank pointed out that historical data suggest that the market usually rallies during earnings season after a selloff. In other words, they’re predicting a rally in August.