OT: Fidelity Viewpoints 11/02/2022

Investing Strategies Mechanical Investing
1

Timmer: The big question for the market

Are we still in a long-term bull market?

  • BY JURRIEN TIMMER, DIRECTOR OF GLOBAL MACRO FOR FIDELITY MANAGEMENT & RESEARCH COMPANY (FMRCO),
  • FIDELITY VIEWPOINTS
  • – 11/02/2022
  • 6 MIN READ

Key takeaways

  • It’s hard to know if the market’s October lows will hold.
  • The political backdrop could actually be a positive for the market. However, stocks still look overvalued in comparison to a fair-value price-earnings ratio.
  • Perhaps the bigger question is not whether the most recent lows hold, but whether we are still in the long-term bull market that started in 2009.

image
image800×448 43.8 KB

Whether the October lows hold is anyone’s guess. Through last week, the market gains had been decent in technical terms. The percentage of stocks trading above their 20-day moving average had improved from 3% at the lows to 88%. And there was decent price momentum as well, with the percentage of stocks with positive momentum reaching 55% (similar to what we saw during the summer rally).

4 Likes