Wall Street's Tough Week Pushes S&P 500 Into Negative Territory for the New Year
Here's the 'Secret Sauce' for S&P to Notch Another Double-digit Gain
On the eve of a big drop on Friday, David Einhorn, who became famous for profiting during the Lehman crisis, stated that the structure of the U.S. stock market is collapsing.
David Einhorn stated that due to the rise of passive investing and investors placing more importance on price rather than value, overvalued Stocks become even more overvalued and undervalued Stocks become even more undervalued. This phenomenon distorts market value and plants significant hidden risks.
"Returning to the pre-liberation era overnight"! The U.S. stock market has erased its gains after the election, and the employment report worries Wall Street about a "double loss" in stocks and bonds.
Measured by the performance of the largest Global ETF tracking the S&P and long-term U.S. Treasury bonds, the total returns of U.S. stocks and bonds have been negative for five consecutive weeks, marking the longest streak of negative returns since September 2023. Friday's non-farm payroll report raised concerns among traders about the Federal Reserve closing the door on this round of easing.
The Stock Market Has One More Chance to Fight off the Bears
SA Charts: Climb in Retail Trade Hiring Fueled December's Better-than-expected Job Growth