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Wall St: Stock surge is a bear-market trap with curve inverted, warns BofA

The strategists caution that the selloff that took the S&P 500 12% from its January record is not over and sharp rallies are typical of volatility in bear markets

Wall Street, US stocks, S&P, Dow Jones
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Stocks registered a big pullback at the start of the year, and investors are now wondering if the market’s mired in a bear market

Bloomberg
The 11% surge in US stocks in the past two weeks has the hallmarks of a bear-market rally that might give way to deeper losses. That’s the conclusion of analysts at Bank of America, who say warning signs are flashing for a market that has climbed “despite clearly weaker fundamentals,” including a Federal Reserve bent on raising rates sharply this year to battle persistent inflation.
 
The strategists caution that the selloff that took the S&P 500 12% from its January record is not over and sharp rallies are typical of volatility in bear markets, with some of the biggest on

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First Published: Mar 30 2022 | 9:06 PM IST

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