Wells Fargo & Co., one of America’s largest banks, has declared that the bear market in stocks is over. This news has been welcomed as a positive sign for investors, as well as for the crypto market.
The research note from Wells Fargo stated that the bear market is over, being replaced by “a different animal”. It also noted the limited upside potential in the current trends.[0]
Chris Harvey, the head of equity strategy at Wells Fargo, reported that the recent pullback in the yield of investment-grade corporate bonds was “inconsistent” with the fear of a further selloff in the S&P 500.[1] He further highlighted the healthy balance-sheets at both the corporate and consumer level, which suggests a subdued level of systemic risk.[1]
Harvey maintained an end-of-year target for the S&P 500 of 4,200 points, which would represent a rise of just 2.7% from the 4,090 level the benchmark traded at as of Monday’s closing bell.[2] In conclusion, the analyst does not have an overly optimistic outlook on stocks for this year, although he does think the worst is behind us.[3]
The news that the bear market is over is seen as a positive for both stocks and crypto markets, as investors have more confidence in the markets and may be willing to invest more freely. With the bear market officially over, it remains to be seen how the markets will fare over the coming months.
0. “Wells Fargo Says The Bear Market is Over” Watcher Guru, 13 Feb. 2023, https://watcher.guru/news/wells-fargo-says-the-bear-market-is-over
1. “Bear Market Is Over in Stocks, Wells Fargo’s Chris Harvey Says” Bloomberg, 13 Feb. 2023, https://www.bloomberg.com/news/articles/2023-02-13/wells-fargo-s-chris-harvey-says-bear-market-is-over-in-stocks
2. “Stock market crash is over but the bull is ‘stuck in traffic’, Wells Fargo says” Markets Insider, 14 Feb. 2023, https://markets.businessinsider.com/news/stocks/stock-market-crash-over-bull-stuck-in-traffic-wells-fargo-2023-2
3. “Wells Fargo’s Top Analyst Predicts End of Stocks Bear Market – What Does This Mean for Cryptos?” Cryptonews, 14 Feb. 2023, https://cryptonews.com/news/wells-fargos-top-analyst-predicts-end-of-stocks-bear-market-what-does-mean-for-cryptos.htm