Clicky

  • Login
  • Register
  • Submit Your Content
  • Contact Us
Wednesday, August 21, 2024
World Tribune
No Result
View All Result
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food
Submit
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food
No Result
View All Result
World Tribune
No Result
View All Result

Stocks may take 6 months to recover from the selloff: BofA

August 12, 2024
in Business
Reading Time: 2 mins read
A A
Stocks may take 6 months to recover from the selloff: BofA
0
SHARES
ShareShareShareShareShare

Stocks may take 6 months to recover from the selloff: BofA

Bank of America analysts said it may be six months before global stock markets regain losses from their recent dive.

The unwinding of the yen carry trade, where investors borrow yen at low interest rates to invest in other markets with higher rates, and weaker-than-expected jobs numbers in the U.S. prompted a 6.4% pullback over three days in the MSCI AC World Index, which tracks thousands of stocks across developed and emerging market economies. 

Taking a look back at historical trends, the BofA analysts found that over the past 34 years there had been 26 similar three-day pullbacks of 6%-7% in the MSCI AC World Index. Of those times, equities took an average of six months to recoup their losses.

Following such selloffs, 12-month returns were positive 73% of the time, and the MSCI AC World Index averaged 17.9% in the subsequent year, the analysts wrote in a note on Monday. Equities in the tech, materials, and consumer discretionary sectors tended to rally the most in this 12-month period. 

“Sentiment towards equities has recently weakened, but an improving global earnings cycle and an impending easing cycle provides a positive backdrop for equity markets longer-term,” they said.

While investors worried about a potential recession last week, some notable bears aren’t so sure that a downturn is guaranteed. That includes “Dr. Doom” economist Nouriel Roubini, who said in a Bloomberg TV interview last week that despite some evidence of a slowdown, “there’s some elements of strength in the economy.”

Even the inventor of the recession-predicting Sahm Rule, Claudia Sahm, said although the rule was triggered by the latest jobs report, it still isn’t time to panic.

In a separate note published Friday, BofA analysts warned investors against panic selling as the S&P 500 experiences selloffs of more than 5% three times a year on average. Since the 1930s, if an investor sat out the 10 best trading days of the year, their returns over time would have been up about 73%, compared to up 25,000% if they had not missed those days, the analysts wrote. The main message: stay invested. 

“Panic selling can be a bad idea, as the best days often follow the worst days,” the analysts wrote.

Recommended Newsletter: CEO Daily provides key context for the news leaders need to know from across the world of business. Every weekday morning, more than 125,000 readers trust CEO Daily for insights about–and from inside–the C-suite. Subscribe Now.

Credit: Source link

READ ALSO

The EU wants no corner of the digital sphere left untouched, warning X and AI could be next

Federal judge derails FTC’s sweeping ban on non-compete agreements

ShareTweetSendSharePin
Previous Post

SpaceX repeatedly polluted waters in Texas, TCEQ, EPA found

Next Post

Luis Gil stymies league-worst offense

Related Posts

The EU wants no corner of the digital sphere left untouched, warning X and AI could be next
Business

The EU wants no corner of the digital sphere left untouched, warning X and AI could be next

August 21, 2024
Federal judge derails FTC’s sweeping ban on non-compete agreements
Business

Federal judge derails FTC’s sweeping ban on non-compete agreements

August 21, 2024
How to watch, stream the Democratic National Convention Night Two live online free without cable, on NBC, ABC, CBS, Fox, CNN, MSNBC
Business

How to watch, stream the Democratic National Convention Night Two live online free without cable, on NBC, ABC, CBS, Fox, CNN, MSNBC

August 21, 2024
We’re Gen Z college dropouts who raised .4M for our blockchain startup. Here’s how we did it
Business

We’re Gen Z college dropouts who raised $41.4M for our blockchain startup. Here’s how we did it

August 20, 2024
MLB legend Derek Jeter’s best business advice
Business

MLB legend Derek Jeter’s best business advice

August 20, 2024
Elon Musk’s litigation strategy is about ‘punishing defendants for their speech’
Business

Elon Musk’s litigation strategy is about ‘punishing defendants for their speech’

August 20, 2024
Next Post
Luis Gil stymies league-worst offense

Luis Gil stymies league-worst offense

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

What's New Here!

Aaron Rodgers does it all in one of his best day at Jets camp

Aaron Rodgers does it all in one of his best day at Jets camp

August 14, 2024
Agilent Technologies acquires lab instrument monitoring company Sigsense

Agilent Technologies acquires lab instrument monitoring company Sigsense

July 30, 2024
Intel slashes 18,000 jobs and suspends dividend to better compete with chip rivals Nvidia and AMD

Intel slashes 18,000 jobs and suspends dividend to better compete with chip rivals Nvidia and AMD

August 1, 2024
The Cybertruck is coming to Fortnite and Rocket League because we’re being punished

The Cybertruck is coming to Fortnite and Rocket League because we’re being punished

July 23, 2024
iPhone camera app Halide has an ‘anti-intelligent’ mode to make shooting with RAW easier

iPhone camera app Halide has an ‘anti-intelligent’ mode to make shooting with RAW easier

August 15, 2024
The handcuff running back to embrace, avoid

The handcuff running back to embrace, avoid

August 20, 2024
Climate Change-Driven Food Ingredient Shortages: How Suppliers Should Start Preparing

Climate Change-Driven Food Ingredient Shortages: How Suppliers Should Start Preparing

July 23, 2024

About

World Tribune is an online news portal that shares the latest news on world, business, health, tech, sports, and related topics.

Follow us

Recent Posts

  • Volatility spike was a ‘huge overreaction,’ but more could be ahead, strategist says
  • The EU wants no corner of the digital sphere left untouched, warning X and AI could be next
  • Kevin James recreates viral video in electric Mets moment
  • Japan trade on deck, Wall Street rally pauses

Newslatter

Loading
  • Submit Your Content
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2024 World Tribune - All Rights Reserved!

No Result
View All Result
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food

© 2024 World Tribune - All Rights Reserved!

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In