Wild stock spike revives is-this-the-bottom debate for third time this year
BNN Bloomberg
Another rousing recovery in equities and guess what: everyone wants to argue whether the bottom is in. That bulls have been wrong two times already in 2022 is doing little to tamp down the volume of the debate.
Not that the optimists don’t have some new arguments. This week’s stock rally, including a monster daily gain of 5.5 per cent for the S&P 500, was unlike the previous ones in that it was fueled by real progress in the Federal Reserve’s inflation battle. The dollar also fell through a key support level, China loosened some COVID restrictions and yields retreated sharply from levels not seen in a decade -- all viewed as key ingredients for a more sustainable advance to take hold.
It was more than enough for Rich Ross, the Evercore ISI chartist who was ranked as the No. 1 technical analyst in this year’s Institutional Investor survey, to call an end to the bear market that wiped out as much as US$15 trillion from equity values over 10 months.
“The bear as we know it is dead, and a new bull has begun,” Ross wrote in a note to clients Friday.
