Financial Centre, Dubai--(Newsfile Corp. - October 4, 2022) - The strategists at leading investment advising firm Intellistocks have lowered their end-of-year S&P 500 objective from 3,900 to 3,200, and revised their target for 2023 at 4,200. At Intellistocks research desk, it is an interesting point considering that it was just in June they were answering the question of "when will this bear market end?"
Intellistocks analysts see more downside for the markets
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Since reaching an all-time high of 4,818.62 in early January, the S&P 500 has lost almost 25.6% of its value. On Friday, it reached a closing price of 3,585.62 and, along with its other two primary competitors, has spent the majority of this year trading in a bear market.
As per the internal data analysis done by Intellistocks research team: Last week, traders of fifty or more contracts bought to open nearly five million put options. More importantly, they spent a whopping $8.1 billion on those contracts. That is almost double the amount of any other week in 22 years.
Mark Mael, Intellistocks' Vice President of Research added, "Many tech concepts, such as SAAS, Ecommerce, and those centered on WFH, who revolutionized business practices and commanded larger price multiples, will need to adapt to more value-centric pricing. The same thing happened in 2000-2002, when there were many rallies in between the ongoing decline that gave hope of recovery, but it eventually came after a total decline of 78%."
"We continue to believe that Asian growth will be supportive of the global cycle, and that low investor positioning provides a floor to the market; however, given the recent escalation in hawkish rhetoric, and of new geopolitical tail risks following the security implications arising at Nordstream pipelines last week," Nalini Jindal, co-founder of Intellistocks wrote in the note.
"In the US, the near-term possibilities of further disruptive rises in rates flowing from the UK look limited," she said of the current upheaval in the UK gilt market and its effect on Treasuries. However, "further ahead, the BoJ could loom as a worry."
Intellistocks has offices in Hong Kong, the United Arab Emirates, and India, is registered with the London Stock Exchange, and helps investors globally.
For additional information on Intellistocks and other corporate information, please visit the Company's website at www.intellistocks.com.
Disclaimer by the investment advisor quoted in this story:
IntelliSelect is a geodiversified portfolio that aims to invest in stocks listed in the U.S., U.K., Mexico, Australia and select Middle Eastern countries. Intellistocks has a number of portfolio buckets that are spread out over different international markets and places. It is very likely that one portfolio's performance will differ from another, for example, a portfolio that only invests in the United States or a specific market will perform differently than the Intelliselect portfolio; therefore, this performance should not be seen as a benchmark or guide for all other portfolio buckets. It is also highly probable that the performance of an individual investor's portfolio may have differed from the returns reported here. Although we made every effort to mirror the performance of the Model Portfolio throughout time, it is likely that an actual investor's portfolio would have performed better or worse because a variety of factors, such as portfolio size, time of entrance, risk tolerance, etc., have a key influence.
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