A New Bull Market Could Be Underway, Even If It Doesn’t Feel Like It

  • According to eToro’s US investment analysts, a new bull market could already be in place. 
  • Callie Cox stated to Insider that if there is no recession, it’s possible that stocks have already bottomed and will tick higher in 2023.
  • “New bulls are not usually able to feel like bulls. But it can be costly to miss the beginning of one.”

According to eToro, the US investment analyst suggests that if the US economy avoids a slump, a new bullish market could have already begun.

In eToro’s year-ahead outlookCallie Cox points out that while it may seem like stocks have been on the rise, it’s not often the case that bull market resembles bull markets in their early stages. 

She pointed out that the S&P 500 has fallen 26% from peak to trough, which is about in line with prior bear markets dating back to 1950 that haven’t coincided with a recession.

Cox stated to Insider, “A bull market begins at a low point of a bear.” “If the October low was really the bottom, then we’ve been in bull for two months. New bulls don’t feel like bulls often, but it can be costly if you miss the beginning.

Not only that, but corporate earnings for this year have remained relatively robust, she said, and downward revisions to 2023 aren’t nearly as steep as the previous 11 recesses. 

A recession is not impossible, but the Federal Reserve has a long way to go before it can bring down inflation. There are also more rate hikes possible. eToro recommends that investors add quality risk positions that focus on strong financial strength, cash management, and financial strength.

UBS strategists cautioned against eToro’s view. stocks have yet to bottomThe markets aren’t fully pricing in the possibility of a downturn. BarclaysA similar warning was issued by.

Cox maintained that this sentiment was negative throughout the year, but that’s not new. 

She said, “We’ve been prepared for this recession for months.” “Markets are based on expectations and when the worst-case scenario has been priced in, it tends to hurt less than what you think.”

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