Benzinga - by Benzinga Neuro, Benzinga Staff Writer.
The stock market is poised for a significant upturn over the next year, according to a leading research firm’s equity strategist.
What Happened: Carson Group’s equity strategist Ryan Detrick has identified two key stock market signals that suggest a potential 13% gain over the next twelve months, reported Business Insider.
The first signal is the S&P 500’s 24% rise over the past 20 weeks, historically leading to an average gain of 13% over the next year. The second signal is the S&P 500’s 8% year-to-date rise as of the 50th trading day of the year. This has resulted in an average 12.6% gain for the rest of the year, compared to the average return of 7.6%.
“We found 25 other times stocks were up at least 5% on day 50 and the rest of the year was up an incredible 24 times and up 12.6% on average the rest of the year versus the average return of 7.6%,” Detrick explained.
“This strength off of the late October lows is actually consistent with the beginning of longer-term market strength, not the end of bull markets,” Detrick said.
Why It Matters: This forecast comes amid a series of contrasting predictions about the stock market. Earlier in February, a report from Ned Davis Research suggested that the current bull market, which has lasted for nearly a year, could continue for the foreseeable future, potentially until 2027.
However, in March, the same firm cautioned that the market could be on the brink of a correction due to prolonged market enthusiasm.
Meanwhile, John Hussman, the president of the Hussman Investment Trust, warned in February that the current stock market rally, driven by a “fear of missing out” (FOMO), could lead to disappointing long-term results.
Detrick’s forecast also comes at a time when Piper Sandler‘s chief market technician, Craig Johnson, warned of a potential 10% correction in the stock market, based on technical signals indicating that the market may not be ready for a significant upturn.
Read Next: Crypto Analyst Says Dogecoin Has Broken Macro Downtrend, Now Testing Support Between These Levels
Image Via Shutterstock
Engineered by Benzinga Neuro, Edited by
Kaustubh Bagalkote
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you.
Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.