Under the influence of high inflation and Fed continuing to raise interest rates, the global market has been falling recently.
Nasdaq Comprehensive Index has fallen by more than 30% this year, Hang Seng Index and S&P 500 have fallen by more than 20%.
Hang Seng Technology Index is approaching its historical low set in March, and has fallen by more than 35% this year.
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From the horizontal comparison of valuations of major global indexes, although the US stock market has recently retreated sharply and has performed at the bottom among global stock markets, overall, the US valuation is still the highest. The Dow Jones Industrial Average, , Nasdaq, , and S&P 500 indexes have price-to-earnings ratios of 49%, 18%, and 30%, respectively.
Judging from the index price-to-book ratio's quantile in the past 10 years, the current index price-to-book ratio is below the historical central level (50% quantile) including the State-owned Enterprise Index, Hang Seng Index, Shanghai Composite Index , South Korea Comprehensive Index, UK FTSE 100 Index, Australian S&P 200 Index, etc. The price-to-book ratios of the Dow and S&P 500 are higher than the 80% trading days in the past 10 years.
2022 Wall Street most accurate analyst and strategy analyst at Bank of America pointed out that as the financial environment tightens, geopolitical risks rise and the global economic growth prospects are bleak, the valuation of US stock is still under great pressure, and US stocks will fall further. He expects S&P 500 to trade between 3300 and 3500 points.
Do you think the market will continue to fall? How long will this bear market last? Welcome to express your thoughts in the comment section.
(Article source: Hafu Securities)
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