Case for Stocks Is Seen in Model Showing Economic Bottom Is Past
- US economy hit low in December in Bloomberg Intelligence index
- Backdrop signals ‘significant support for stocks’: BI’s Wolff
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US stocks have defied skeptics and rallied this year in the face of bank collapses, continuous fears of a recession and what’s expected to be the gloomiest stretch for corporate profits in years.
One potential explanation for why this is happening is things may not be as bad as they seem. In fact, according to a Bloomberg Intelligence model known as the Economic Regime Index, the worst of America’s economic pain appears to have happened months ago.