🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Is The End Of The Great Bull Market On The Horizon?

Published 01/14/2022, 09:54 AM
Updated 09/11/2023, 01:40 PM
US500
-
IXIC
-
VIX
-

There are few things market watchers love more than trying to predict the end of significant trends. To slightly twist the popular phrase, analysts have successfully predicted twenty of the last five bear markets. Whenever there is a slight wobble in stock markets, it doesn't take too long for the doomsayers to start queuing up to say that this time, absolutely, definitely is the top.

Given the volatility in stock markets at the start of 2022 - and let's not forget, we are only a couple of weeks into the year - it is perhaps not surprising that those of a bearish disposition are wondering whether finally, this is their year.

In the first week of January, the NASDAQ had its biggest one-day fall since February 2021 and this week saw it fall to its lowest levels since mid-October last year. At one point this week, it was down almost 10% from the November 2021 high, leading to media headlines of this being "official" correction territory.

It is essential to keep a sense of perspective here. First of all, I don't think there's any officially sanctioned definition of what is and what isn't a correction, so let's not get too carried away with some arbitrary number. And it is only ten days ago that the NASDAQ's broader-based sibling, the S&P 500, hit fresh all-time highs. In light of this, perhaps it is too early to call for the death of stocks' excellent bull run.

But investors have started the year more nervous than we have seen for some time, based on the volatility we see in the stock market indices. One measure of this is the VIX - the options volatility index, often casually referred to as the Fear Index. 

This has jumped at various points this month - but only back to mid-December levels. While stock markets are undoubtedly jittery at the start of 2022, calls for an imminent market crash may be somewhat premature for now.

Disclaimer This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of Capital.com or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. Past performance is no guarantee of future results.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.