Surely this must be the end of the rally
The equity allocation of US households has risen to 60 percent. The last time stocks had this much weight in the average retail portfolio was during the ‘Dotcom’ bubble. This can leave one to conclude that a stock market crisis is imminent.
A bear market rally causes 'directionless volatility’
With stock market indicators showing rapid growth, what is happening? Is the bear market ending or is this just a regular bear market rally that will soon end? Some way we might be facing a recovery, others say that it’s just hopeless optimism.
Forty years of the bull market
Forty years ago this week the bull market started in the United States. Not just any bull market, but the biggest bull market ever. Despite the crash of 1987, the dotcom graveyard, the attacks of 11 September 2001, the Great Financial Crisis and the Covid pandemic, this bull market continued to rise, fuelled by structurally falling interest rates, higher valuations and sharply rising profits.
The Dow Jones bottomed forty years ago on 12 August 1982 at 777 points, the same level as in January 1964.
‘Equity bull market will continue in 2021’
Low interest rates, moderate inflation and a strong recovery in corporate profits. For the time being, the environment for equities remains extremely favourable, according to James Ashley, Head of International Market Strategy at Goldman Sachs Asset Management (GSAM).