Foreign newspaper reports, with the recent correction in U.S. stocks, coupled with concerns about rising inflation, the market began to speculate on when the U.S. stock bull market will end? At present, Wall Street is in the early, middle and late bull market has three schools of thought.
Citi Robert Buckland’s team said that in terms of corporate profitability, it is now at the beginning of the bull market. Global corporate profits bottomed out in November last year due to the impact of the Newcastle pneumonia (CCP) outbreak, meaning the market is now in the first year of the recovery cycle. Analysts tracked by Citi predict that corporate profits will jump 36% this year as the global economy reopens, and Buckland is confident that the current fundamentals are strong.
Morgan Stanley Mike Wilson believes that the bull market has reached the mid-term stage, no longer recommended to benefit from the initial cycle and economic reboot of the sector, lowering the rating of non-essential goods. The next 12 months are expected to turn to moderate returns, and if profit performance begins to stagnate, the stock market may see a 10% to 20% correction.
Vincent Deluard of StoneX said that the bull market in U.S. stocks has reached its end, and the size of new issues at high valuations has increased significantly, while insiders are accelerating their cash out. Phil Toews, CEO of asset management firm Toews, agrees, expecting corporate profits to continue to rise and pose a challenge to the stock market, and that valuations, the best predictor of market movement, have surpassed levels seen during the dot-com bubble, with the bull market expected to end within a year.
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