This round of rebound in the US stock market is comparable to that in 2020
The S&P's rebound over the past six weeks is comparable to the major rebound of the U.S. stock market after the pandemic shock in 2020. (Figure 1); The Nasdaq index has surged back into the overbought territory (Figure 2); Reviewing the other 16 instances of approximately 20% pullbacks in the U.S. stock market since 1950, the median scenario suggests that the U.S. stock market will decline over the next 12 months (Figure 3); Will this time be different?
The S&P's rebound over the past six weeks is comparable to the major rebound of the U.S. stock market after the pandemic shock in 2020. (Figure 1);
The Nasdaq index has soared back into the overbought territory (Figure 2);
Looking back at the other 16 instances of approximately 20% pullbacks in the U.S. stock market since 1950, the median scenario suggests that the U.S. stock market will decline over the next 12 months (Figure 3);
Will this time be different?
