Stock Market Update on S&P 500 


Finance & Business


PUBLISHED: Jun 21, 22

The S&P 500 has entered bear market territory, portraying a bleak picture for US markets. 

Last week's inflation figures ruffled the stock market and caused a catastrophe, with key indexes closing the week approximately 5% down.

Meanwhile, because this is not a market that rewards excessive risk-taking

sticking to the disciplines of diversification (across and within asset classes) and the power of periodic rebalancing may be a superior strategy.

Given high inflation, increasing interest rates, and dwindling growth prospects, solid free cash flow, healthy (cash-rich, low-debt) balance sheets

positive profit revisions, and low volatility may continue to be valued.

The "breadth thrusts" are a key sign of the bull market's resumption

The percentage of equities trading above their 200-day moving averages has increased, according to the paper

although early phases of durable bull rallies are often distinguished by greater "breadth thrusts.