Markets are in 'things couldn't be worse' rally
The 1973-74 bear market was a brutal one as investors worried about rising inflation and faltering economic activity, exacerbated by OPEC’s decision in October 1973 to stop oil exports to the United States. Move in key steps US blue-chip stock market index, S & The P 500, fell 42.6 percent in the 21 months ended September 1974. Fast forward nearly half a century, and investors are once again spooked by rising inflation and stagnating economic activity. S & The P 500 index fell 20.6 percent in the first six months of 2022, its worst first-half performance in more than 50 years. Since then, however, financial markets have strengthened strongly, with the prices of stocks, bonds and cryptocurrencies posting impressive gains. Since hitting its lowest point on June 16, S & The P 500 has gained 12.6 percent, while the tech-heavy Nasdaq has gained 16.4 percent. The only plausible explanation for this rally is that – like Corrigan – investors have formed the view that it is time to