Fundstrat Says Market Could be Heading for a ‘1982 Moment’

This post was originally published on this site

https://i-invdn-com.investing.com/news/LYNXNPEB6J0AJ_M.jpg

Fundstrat, the independent research firm, said Friday that disinflation tailwinds are building.

In a tweet, CNBC’s Carl Quintanilla quoted the firm as saying: “.. disinflation tailwinds strengthening .. we think this is turning out to the be an August 1982 moment. when stocks “recovered the entire 36 month bear market loss in 4 months .. that is why we think S&P 500 could be >4,800 before year-end ..”

The post was later retweeted by Tom Lee, a managing partner and Head of Research at Fundstrat.

In August 1982, the Dow Jones Industrial Average dropped to a recession low. A decline in inflation and long-term interest rates picking up resulted in investors gaining confidence that soaring inflation would ease, marking the beginning of a strong bull market.

Markets continued their recent rally following news Thursday that the latest GDP figure showed a second-straight contraction. Investors seem to be betting the economic downturn will result in the Federal Reserve ending its aggressive hiking campaign.