Morgan Stanley has warned that the S&P 500 is about to enter bearish territory following three solid weeks of losses as stock markets continue to be very volatile in the face of rate hikes, inflation and ongoing geopolitical challenges.
The bank’s strategists say the fall into bear territory could happen at any moment, noting “With defensive stocks now expensive and offering little absolute upside, the S&P 500 appears ready to join the ongoing bear market. The market has been so picked over at this point, it’s not clear where the next rotation lies. In our experience, when that happens, it usually means the overall index is about to fall sharply with almost all stocks falling in unison.”
Other indexes are also in the doldrums and falling, with the Dow starting the week with a 1.18% fall and the Nasdaq down 0.58%.
With further falls appearing inevitable amid Federal Reserve action to take down inflation, gold is more attractive than ever as a safe haven.
