The Dow Jones industrial average staged a 370-point rally a couple of weeks ago. It was the fifth attempt in four months to turn around...
The Dow Jones industrial average staged a 370-point rally a couple of weeks ago. It was the fifth attempt in four months to turn around a market treading close to bear territory.
Calling the stock market’s bottom can be extremely profitable. But spotting the difference between a bottom and a “bear market rally” can confound even seasoned market observers.
“If you know how, please tell me,” says Milton Ezrati, senior economist and market strategist at Lord Abbett & Co.
Ezrati looks at corporate-earnings strength, manufacturing orders and other technical tea leaves to discern when a market bottom is coming.
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“Right now, we think the fundamentals are getting increasingly favorable,” he says.
JP Morgan equity strategist Thomas Lee says he’s seen more investors chasing stocks that have begun to rise, a form of “bargain hunting” that is “consistent with a tradable bottom.”