Wells Fargo’s Top Analyst Predicts Finish of Stocks Bear Market – Exactly What Does This Suggest for Cryptos?

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A high analyst in the major US bank Wells Fargo has predicted the bear market in stocks has ended for the time being – a conjecture that may be great news for crypto.

Based on Chris Harvey, a very respected equity strategist at Wells Fargo, the most recent pullback observed in the yield of investment-grade corporate bonds is “inconsistent” by having an extended bear market within the important S&ampP 500 stock index.

The S&ampP 500 frequently works as a proxy for that overall risk appetite on the market, and major trend alterations in the forex market could therefore also spill to the crypto markets.

The analyst stated strong balance sheets for corporations and also at the customer level implies that the down-side risk for the stock exchange now’s smaller sized, without any catalysts remaining for big moves towards the downside.

The outlook was shared by Harvey inside a note to clients seen by Bloomberg and reported on Monday.

Narrowing credit spreads

Harvey added that narrowing credit spreads seen lately also indicate the bear marketplace is likely over.

“Bear markets frequently finish whenever we see sharp tightenings and healthy issuance much like what we should have observed during the last several several weeks. When bear markets go ‘next level’ spreads widen, not tighten, because they have today,” Harvey authored within the note, based on Bloomberg.

The narrowing spreads “support our thoughts about systemic risk,” he added.

Harvey presently has annually-finish target for that S&ampP 500 of four,200, which puts his target just 1.5% above Monday’s closing cost. The analyst is, quite simply, not excessively bullish on stocks with this year, although he believes the worst to become over.

The bull remains “stuck in traffic,” Bloomberg quoted Harvey as writing in the new note.

S&ampP 500 index. Source: TradingView

Disbelief remains mainstream view

Meanwhile, Bloomberg also stated within the article that the survey among users of their Markets Live product from late The month of january of the year discovered that 70% of respondents believed the stock exchange hadn’t yet bottomed. Which was regardless of the S&ampP 500 getting already fallen 25% from the peak last year.

The S&ampP 500 has ongoing to increase because the survey was conducted, and it is presently lower by about 14% from the peak at the begining of The month of january this season.

An identical story may also be observed in bitcoin (BTC) and also the broader crypto market, where lots of appear to think the major digital assets have further to fall before we are able to call an finish towards the bear market.

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