Stocktake: A new global bull market for stocks?

Three-quarters of stock markets around the world have gained at least 20%

A pedestrian walks in front of an electronic quotation board displaying stock prices of the Tokyo Stock Exchange in Tokyo. Photograph: Kazuhiro Nogi/AFP

A pedestrian walks in front of an electronic quotation board displaying stock prices of the Tokyo Stock Exchange in Tokyo. Photograph: Kazuhiro Nogi/AFP

 

Stocks may have pulled back last week but the market action indicates we are now in a global bull market, according to Callum Thomas of Topdown Charts. Thomas, who suggested at March’s market bottom that a “generational buying opportunity in global equities” was at hand, notes that three-quarters of national stock markets around the world are in bull market territory – that is, they have gained at least 20 per cent.

Some might quibble with that definition. Nevertheless, the data shows the medium-term outlook for stocks tends to be bright in these instances. Thomas also notes the percentage of countries that had gained over the last 12 months hit “washed-out levels” (defined as less than 20 per cent) in March before turning up in May.

Stimulus tailwinds

Again, this pattern has a “solid track record for producing profitable medium-term buying signals for global equities”. Finally, markets are awash in liquidity and stocks tend to do well when policy stimulus is implemented. Historic stimulus tailwinds and bullish medium-term technical signals indicates we are in a new cyclical bull market in global equities, says Thomas. Investors, fearful of another downdraft following last week’s retreat, will hope he is right.

The Irish Times Logo
Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.
SUBSCRIBE
GO BACK
Error Image
The account details entered are not currently associated with an Irish Times subscription. Please subscribe to sign in to comment.
Comment Sign In

Forgot password?
The Irish Times Logo
Thank you
You should receive instructions for resetting your password. When you have reset your password, you can Sign In.
The Irish Times Logo
Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.
Screen Name Selection

Hello

Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.

The Irish Times Logo
Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.
SUBSCRIBE
Forgot Password
Please enter your email address so we can send you a link to reset your password.

Sign In

Your Comments
We reserve the right to remove any content at any time from this Community, including without limitation if it violates the Community Standards. We ask that you report content that you in good faith believe violates the above rules by clicking the Flag link next to the offending comment or by filling out this form. New comments are only accepted for 3 days from the date of publication.