S&P 500 closes lower, Nasdaq sheds 1% as bond yields pop – CNBC
Current bear market follows historical trends, Glenmede’s Michael Reynolds says
The current market is performing in line with how bear markets typically have in the past, according to Michael Reynolds, vice president of investment strategy at Glenmede.
He said the average bear market since World War II has lasted 14 months. And the market usually sees 35.7% drop from the pre-bear high.
“The current market appears to be following a similar trajectory of an average historical bear market so far,” Reynolds said.
Reynolds pointed to the S&P 500 ending last week down 0.2%. It was about 7% off its late-November high, which he said can be taken to mean the end of “yet another bear market rally.”
He said investors should consider staying underweight on risk assets considering there may be further slides.
— Alex Harring
SPAC liquidation picks up in December as time runs out for firms to complete mergers
Some 74 SPAC deals have liquidated in December, according to SPAC Research, as the blank-check companies wrap up a difficult year in an ugly market.
Year to date, a total of 128 special purpose acquisition companies have liquidated, compared to one SPAC liquidation in all of 2021, SPAC Research found.
SPACs have faced a rough 2022. These companies typically pool funding to identify and finance an acquisition of a smaller company and bring it public within a particular time frame.
Investors have become increasingly risk averse amid this year’s market tumult, curtailing the appetite for SPACs. The liquidations arrive as many of these companies reach the end of the time allotted for them to identify a target and merge with it. More than 600 SPACs priced in 2021, driving this year’s spike in liquidations.
Major names that have liquidated in December include Brad Gerstner’s Altimeter Growth 2. Crypto firm Bullish and Far Peak Acquisition also called off their merger this month.
— Darla Mercado, Gina Francolla
Much heralded Santa Claus Rally net gain since 2000? Try 0.76%
The folks at Birinyi Associates on Tuesday needed to play Scrooge and throw cold water on the idea that a Santa Claus Rally is an investment approach that has proven profitable in the past generation.
Their conclusion? The Santa Claus Rally is a myth, at least as shown in data going back to 2000.
In only two years (2001 — almost +6%, and 2009 — more than +7%) would investors have seen an appreciable return during that supposed, sure-thing, can’t miss stretch starting at Christmas and running through the first two trading days of the following year.
The average gain since 2000? 0.76%.
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