The mood in the market is overwhelmingly bullish — but that wasn’t the case just six months earlier. Wall Street analysts entered the year expecting the S&P 500 to be flat in 2023 — just for markets to rip higher in the face of their estimates. To start the year, 42 analysts predicted the S&P…
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2022 forecast: Is a rotation into value stocks on the table?
Strap yourselves in, 2022 is looking like a tough year for investors — with Morgan Stanley going so far as to tell investors to stay away from US stocks. And market strategists are especially wary of a particular type… Don’t overstay your welcome The S&P 500 is up 27% in 2021 — nearly triple the…
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What should investors expect with the stock market in 2022?
Biden is entering the second year of his presidential term — and here’s why that’s a bad sign for the market. Stocks tend to underperform their long-term averages in the second year of the US president’s term — according to data from S&P Global Market Intelligence (via WSJ). One speculation is that presidents try to…
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The CAPE ratio reaches highest level since 2000 — signals lower stock market returns
Based on the cyclically adjusted price-to-earnings (CAPE) ratio — investors should expect lower stock market returns in the coming years. ELI5: You may be more familiar with the standard price-to-earnings (P/E) multiple — which helps compare if a stock is under or overpriced. Adding the “cyclically adjusted” removes the impact of recessions or expansions —…
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Heat check: What is the current state of the stock market?
Markets are on fire — just not in the way investors would want. In the past few weeks, strategists warned of several threats to the economy which could lead to large market swings. The most bearish of them all, Morgan Stanley, forecasted a 20% drop in the S&P 500. Just how bad can it get?…
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