Fears of a recession, the “war” of the U.S. stock sell-off began to spread from the technology and growth sectors to other sectors, and even retailers, which had been relatively unaffected by the financial turmoil, were hit hard last week.
On Friday, the S&P 500 index fell into a bear market for a time. Fortunately, the reversal in the last hour made it “bear exit”, but it cannot be ignored that the index has fallen for seven consecutive weeks, the highest since March 2001. The longest losing streak; at the same time, the Dow has fallen for 8 weeks, the longest losing streak in nearly a century.
Source: Bloomberg
With the S&P 500 teetering on the brink of a bear market, calls for a recession on Wall Street have come one after another. Technology stocks, which once dominated the early days of the epidemic, became the biggest losers of this correction, but the defensive sector saw an impressive rise.
At a time of heightened market volatility, Wall Street institutions have shown their magic on how to buy U.S. stocks next.
According to the team of Deutsche Bank analysts Binky Chadha,
The sell-off in U.S. stocks signaled a shift toward a pricing recession. The S&P fell more than 20% from its record high on Friday, plunged into a bear market at one point and is approaching a typical 24% decline during the 1946 recession, and the current 90-plus-session sell-off is well beyond a typical downturn unrelated to contraction.
Adam Phillips, managing director of portfolio strategy at EP Wealth Advisors, said,
The Fed has been the main driver of the market decline, but the latest earnings reports from retailers have added to concerns about the economic outlook, and now that we’ve hit the 20% (i.e. technical bear market) level, the big question will be where to go next?
And Goldman Sachs has begun quietly distributing its Recession Playbook to its professional subscribers, in which the bank discusses S&P 500 prices, earnings, valuations, and how sectors and factors have performed in past recessions, giving those who want to weather the economy Some revelation for recessionary investors. and said,
Defensive and high-quality stocks typically outperformed other types of stocks in the 12 months leading up to a recession; sectors such as energy, consumer staples, and healthcare typically outperform during recessions.
Wells Fargo is adjusting its stock guidance and price target for a “possible” recession, including raising the utilities sector to “neutral” from “most unfavorable”, which the bank said has highlighted defensive value in the sector. In addition, it downgraded the consumer discretionary sector to “unfavorable.”
Source: MarketWatch
At present, worries about the collapse of U.S. stocks are getting higher and higher, especially the market panic brought about by the soaring U.S. bond yields and the expectation of raising interest rates in advance.
Some people are pessimistic that there will never be a bottom.
Some people firmly believe in Buffett’s saying never short the United States (US stocks), while others have been waiting for the opportunity.
Source: isabelnet
cow friends,
With the current Wall Street “recession trade” prevailing,
Is it bargain hunting or turn around and leave?
Stick to tech stocks or embrace defensive stocks?
Welcome to leave your unique insights in the comment area~
edit/somer
This article is reprinted from: https://news.futunn.com/post/15771627?src=3&report_type=market&report_id=206380&futusource=news_headline_list
This site is for inclusion only, and the copyright belongs to the original author.