S&P 200-day moving average -- The "Maginot Line" of the US stock market?
Bank of America’s Hartnett pointed out that the 200-week moving average of the S&P 500 is 4685, and the 50-week moving average is 5685, forming an investment range. Charlie Munger once mentioned that long-term investment in high-quality U.S. stocks above the 200-week moving average would yield returns exceeding those of the S&P 500. Since 2020, every rebound in U.S. stocks after touching the 200-day moving average has been supported by the Federal Reserve, but this time the situation may be different
The late Charlie Munger had a famous saying:
"If you consistently buy quality U.S. stocks above the 200-week moving average, over time, your investment returns will significantly exceed the S&P 500 index."
For Bank of America’s Hartnett, this means: "The 200-week moving average of the S&P 500 index is currently 4685, and the 50-week moving average is 5685 - this is the range."
There are also views that every rebound in U.S. stocks after touching the 200-day moving average since 2020 has been backed by the Federal Reserve's market rescue.
But this time, is it different?
