It is extremely difficult to predict the bottom of a bear market with a high degree of precision, just as how Nuveen discourages investors from market timing in general, said Saira Malik, CIO of Nuveen.
This comes on the back of the S&P 500 marking its worst six months to start a year since 1962, in first half 2022.
Nuveen has developed a data-driven bear tracker, which informs their discussions and debate around the unique dynamics of the current U.S. equity bear market, how it compares to those in the past and when it might be close to bottoming. The tracker allows Nuveen to gauge the likelihood that an end to the U.S. equity bear market may be imminent by monitoring six key factors: valuations, earnings, Fed policy, manufacturing activity, market breadth and bond spreads.
Followings are key highlights:
Investors continue to bear the burden of this down market.S. stocks quickly reversed course in the first quarter and went from bad to worse