Interactive Brokers chief strategist Steve Sosnick warned the investors “not to be fooled” by these positives. According to him, recent rallies are just part of the process.

“That’s why I like to call that socially acceptable volatility,” Sosnick explained. “The other term, which is not as polite, it was a bear market rally.”

In a chat with Yahoo Finance, HSBC chief multi-asset strategist Max Kettner also said that he doubts the recent rally will hold up.

“It still looks a bit wobbly,” said Kettner. “To me, there’s this bear market rally we are seeing because the underlying fundamental data looks really pretty weak.”

The bear market happens during the time of prolonged price declines in overall markets or indexes. It is usually considered that the market has entered the bear market when the prices fall 20% or more from the recent peak during an extended period. Similarly, when the overall market or an index like the S&P 500 saws a prolonged increase of 20% from the recent low point.

The post Experts Doubt Recent U.S. Stocks Rally, Say Bear Market Exit Still Not Near appeared first on theprimarymarket.com.

S&P Dow Jones Indices, which maintains the S&P 500, also said that the performance is in the top three worst for the index since 1957. This is how far its “live history” goes back.

The outlook for the future also remains bleak amid the Fed’s interest rate hikes, surging inflation, and the fears of recession. Morgan Stanley’s strategists are projecting another 20 percent slide for the S&P 500 if the recession actually takes place.

“We recognize a lot of pain has already been inflicted during this bear market. Nevertheless, we can’t yet get bullish,” Morgan Stanley’s Mike Wilson wrote in a recent analyst note.

On the other hand, Société Générale analyzed “crisis periods” for the US stock market in the past century and concluded that S&P 500 would most likely bottom out at a 34 percent to 40 percent decline compared to its January peak.

S&P 500 officially entered the bear market after suffering a 20.1 percent plunge since its peak in January. It represents the first bear market for the index since the early days of the COVID-19 pandemic in March 2022.

The post S&P 500 Has its Worst First Half in 50 Years appeared first on theprimarymarket.com.

Ryan Payne, the president of the financial planner Payne Capital Management, believes that this testing time for S&P 500 is a perfect opportunity to expand your portfolio. According to Payne, investing in “old-school value names” like AT&T, Citigroup, General Motors, and Verizon should be a priority, especially for those who are in it for the long run. 

“I think any of those old-school value names right now are great to have in your portfolio,” Payne told Yahoo Finance. “And don’t think twice here if you’re a long-term investor.”

The “long-term” distinction is particularly important here. The S&P 500 isn’t expected to recover anytime soon and might face even tougher challenges. However, the investment should pay off down the road.

“If you take the tech out of the S&P 500, you’re trading at 14 times forward earnings,” Payne adds. “That’s so cheap. That’s been as cheap as it’s been in years. I think you have a gift from the gods here as a long-term investor to buy.”

The post Expert Recommends Investing in “Old-School Value Names” Amid S&P 500’s Bear Market appeared first on theprimarymarket.com.

Interactive Brokers chief strategist Steve Sosnick warned the investors “not to be fooled” by these positives. According to him, recent rallies are just part of the process.

“That’s why I like to call that socially acceptable volatility,” Sosnick explained. “The other term, which is not as polite, it was a bear market rally.”

In a chat with Yahoo Finance, HSBC chief multi-asset strategist Max Kettner also said that he doubts the recent rally will hold up.

“It still looks a bit wobbly,” said Kettner. “To me, there’s this bear market rally we are seeing because the underlying fundamental data looks really pretty weak.”

The bear market happens during the time of prolonged price declines in overall markets or indexes. It is usually considered that the market has entered the bear market when the prices fall 20% or more from the recent peak during an extended period. Similarly, when the overall market or an index like the S&P 500 saws a prolonged increase of 20% from the recent low point.

The post Experts Doubt Recent U.S. Stocks Rally, Say Bear Market Exit Still Not Near appeared first on theprimarymarket.com.

S&P Dow Jones Indices, which maintains the S&P 500, also said that the performance is in the top three worst for the index since 1957. This is how far its “live history” goes back.

The outlook for the future also remains bleak amid the Fed’s interest rate hikes, surging inflation, and the fears of recession. Morgan Stanley’s strategists are projecting another 20 percent slide for the S&P 500 if the recession actually takes place.

“We recognize a lot of pain has already been inflicted during this bear market. Nevertheless, we can’t yet get bullish,” Morgan Stanley’s Mike Wilson wrote in a recent analyst note.

On the other hand, Société Générale analyzed “crisis periods” for the US stock market in the past century and concluded that S&P 500 would most likely bottom out at a 34 percent to 40 percent decline compared to its January peak.

S&P 500 officially entered the bear market after suffering a 20.1 percent plunge since its peak in January. It represents the first bear market for the index since the early days of the COVID-19 pandemic in March 2022.

The post S&P 500 Has its Worst First Half in 50 Years appeared first on theprimarymarket.com.

Ryan Payne, the president of the financial planner Payne Capital Management, believes that this testing time for S&P 500 is a perfect opportunity to expand your portfolio. According to Payne, investing in “old-school value names” like AT&T, Citigroup, General Motors, and Verizon should be a priority, especially for those who are in it for the long run. 

“I think any of those old-school value names right now are great to have in your portfolio,” Payne told Yahoo Finance. “And don’t think twice here if you’re a long-term investor.”

The “long-term” distinction is particularly important here. The S&P 500 isn’t expected to recover anytime soon and might face even tougher challenges. However, the investment should pay off down the road.

“If you take the tech out of the S&P 500, you’re trading at 14 times forward earnings,” Payne adds. “That’s so cheap. That’s been as cheap as it’s been in years. I think you have a gift from the gods here as a long-term investor to buy.”

The post Expert Recommends Investing in “Old-School Value Names” Amid S&P 500’s Bear Market appeared first on theprimarymarket.com.