BofA Strategist Sees Market Weakness Persisting Into Q4

BofA Strategist, Michael Hartnett, analyzed the 19 bear markets over the past 140 years to find the average price decline is 37.3% and the average duration is 289 days. Not a comforting picture because this would extend the recent weakness into 4Q22.

The strategist stated "past performance no guide to future performance, but if it were, today's bear market ends Oct 19th '22 with S&P500 at 3000, Nasdaq at 10000; good news is many stocks already there, e.g. 49% of Nasdaq >50% below their 52-week highs, 58% of Nasdaq >37.3% down, and 77% of index in bear market, i.e. down >20%; good news is bear markets are quicker than bull markets."

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