Economics
A Lot Is Riding on Stock Bottom Calls That Worked in a Bull Market
- Strategists look to recent sell-offs to call market bottom
- In a recession, stocks average 18 months to start to recover
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Reversals in positioning that may show sellers are exhausted. Extreme readings in market breadth, pointing to washouts in investor sentiment. Rallies in stocks targeted by shorts.
In trying to pick the bottom in equities, Wall Street has little choice but to rely on signals that worked in the past. It’s a risky kind of logic when confronting a threat that so far has had no historical precedent.