The stock market just flashed bullish a signal suggesting 19% upside by August 2025, BofA says (2024)

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The stock market just flashed bullish a signal suggesting 19% upside by August 2025, BofA says? ›

The S&P 500 just flashed a bullish signal that suggests a 19% gain by August 2025, according to Bank of America. The bank highlighted the stock market's 12 consecutive months of positive year-over-year gains. The signal suggests that equities still have a bullish backdrop despite weakness in April.

Stock market investors may be anxious, but as the old saying goes, "There's no need to panic." "While we maintain a positive view on the U.S. stock market in 2024, there are a range of risk factors that could derail the current bull market," Dilley says.

We want to know if, from the current price levels, a stock will go up or down. The best indicator of this is stock's fair price. When fair price of a stock is below its current price, the stock has good possibility to go up in times to come.

Many investors—both institutional and individual—had borrowed or leveraged heavily to buy stocks, and the crash that began on Black Thursday wiped them out financially, leading to widespread bank failures. That, in turn, became the catalyst that sent the United States into the Great Depression of the 1930s.

Bank of America says 6 of 10 signs point to no. The S&P 500's decline this year—it's down nearly 18% since January—accelerated last week after Federal Reserve Chair Jerome Powell indicated more “pain” was ahead.

"2024 is bound to be a better year for homebuyers, if only because of how terrible 2023 was," says John Graff, CEO at Ashby & Graff Real Estate. Graff anticipates falling interest rates and increasing inventory could result in more opportunities for homebuyers in the months ahead.

Your portfolio might lose value, but losing value is different than losing money. When stock prices fall, your investments are not worth as much. But the market will inevitably rebound, and when that happens, stock prices will increase once again -- and your portfolio will regain the value it lost.

If you see a stock price movement that could indicate a surge, the volume of trades for that stock can tell you that there's significant interest in the stock and allow you to confirm that it's not a false rally. At the same time, trading volume can be a great sign if the surging price is about to come to an end.

Who got rich during the Great Depression? ›

Not everyone, however, lost money during the worst economic downturn in American history. Business titans such as William Boeing and Walter Chrysler actually grew their fortunes during the Great Depression.

Wall Street Crash of 1929

The crash lasted until 1932, resulting in the Great Depression, a time in which stocks lost nearly 90% of their value. The Dow didn't fully recover until November 1954.

“In other words, the money did not exist or disappear for long-term investors if you did not make any transactions. However, for short-term investors, when stock prices go up or down, the money would be transferred among them as a zero-sum game, i.e. your losses would be others' gains, and vice versa.”

Supply and demand determine the value of a stock in the market, with higher demand driving the price higher in turn. Lower demand causes a stock to lose some value—and plummeting demand could cause it to lose all value.

The Big Money bulls forecast that the Dow Jones Industrial Average will end 2024 at about 41,231, 9% higher than current levels. Market optimists had a mean forecast of 5461 for the S&P 500 and 17,143 for the Nasdaq Composite —up 9% and 10%, respectively, from where the indexes were trading on May 1.

The CPI and PCE increased 3.5% and 2.7%, respectively, year on year in March 2024. The PCE Index is projected to fall to 2.1% by fourth-quarter 2024, averaging 2.3% for the year. Supply chain improvements and falling housing prices have yet to be fully reflected in inflation numbers.

Economic growth is projected to slow in 2024 amid increased unemployment and lower inflation. CBO expects the Federal Reserve to respond by reducing interest rates, starting in the middle of the year. In CBO's projections, economic growth rebounds in 2025 and then moderates in later years.

Experts overwhelmingly say that the housing market isn't going to crash anytime soon. The last housing crash helped cause today's lack of supply, which is what's keeping prices from falling. Mortgage rates, however, are expected to fall this year. This will help make homeownership more affordable.