- The current bull market starting from October 2022 is positioned as one of the weakest in history due to high valuations and Fed's monetary policies.
- Despite a bullish outlook, various signals including a high price-to-sales ratio, weak demand for stocks, and a narrowly led mega-cap tech rally, indicate this bull market’s potential fragility.
The equities landscape since October 2022 presents an intriguing paradox. A seemingly bullish market streak is being dubbed as one of the weakest in the annals of financial history by eminent market research entity, Ned Davis Research (NDR). This veiled fragility behind the bull run primarily hinges upon lofty valuations and the Federal Reserve's monetary tightening policies, ostensibly curtailing potential upsides and warranting investment caution.
By NDR's metrics, the ongoing bull market is ranked as historically weak – a feature tracked meticulously since the mid-20th-century, placing the current market at third from the bottom. Despite an upbeat outlook driving investors toward stocks, ground truth signals a less optimistic view and a more cautious approach.
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