There will be no “V-bottom” in this market

Friday, Standard & Poor’s 500 Breaking the 7-week losing streakthe longest on the index since 2001.

Concerns about a slowing economy and tighter monetary policy from the Federal Reserve were at the heart of the decline. Last week’s rebound has likely made some investors question whether the worst is over for stocks, and asking if we’d like to see a comeback similar to what followed the pandemic-induced bear market in 2020.

However, no strategist sees the components of this type of rebound in the current environment.

“There is no V-shaped bottom here,” said Michael Antonelli, managing director and market strategist at Baird. Yahoo Finance Live said on Friday.

“The V-shaped bottoms are just made up that the Fed has gotten very friendly, which is putting in a tailwind [behind the market]And the [or] Antonelli said that some kind of financial motive. Neither of those happened.

last week , Minutes from the Fed’s last policy meeting He suggested that after raising the benchmark interest rate by 0.50% in early May, the central bank is scheduled to do the same in June and July.

And if history is any clue, expect it to be Current nearby bear market Antonelli says it lasts about a year.

“If you’re looking for a peak to a low, the average bear market is about 338 days, just under a year,” Antonelli told Yahoo Finance. “If you’re talking about peak, to trough, [and] Back at the peak, which is about 600 days, which is just over a year and a half. It will take some time to get over this.”

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Year-to-date, the S&P 500 Index (^The Salafist Group for Preaching and Combat) down nearly 13%, Nasdaq (^ninth) is down more than 22%, and the Dow (^DJI) of more than 8%.

In the longer term, however, history suggests that US stocks tend to stay resilient and bounce back after sharp declines. After all 11 of the worst years in history, Antonelli notes that the index was higher after five years.

Enas is a market reporter covering stocks. Follow her on Twitter at Tweet embed

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