Just a day after the S&P 500 closed above 2000 for the first time, Abigail Doolittle, founder of Peak Theories Research, told CNBC that the Federal Reserve's reluctance to raise interest rates lows could lay the grounds for a crash.
The S&P 500 is arguably the most important stock market index on the planet. It represents the free-float value of 500 major corporations primarily domiciled in the US and gives investors an idea of the overall movement in the US equity market.
U.S. stocks rallied on Monday, with the S&P 500 crossing 2,000 for the first time, lifted by a round of corporate deals and optimism that the European Central Bank would embark on further moves to stimulate the European economy.
The S&P 500 (SPX) rose 1.2 percent last week as signs of a slowing economy stoked bets central banks will leave interest rates near record lows for longer, overshadowing escalating tensions in Ukraine.
While acknowledging that each economic and market cycle has its own personality and idiosyncrasies, the strategists found the S&P 500 returns during both cycles were �persistently positive,� rising well beyond the start of the rate-hike cycle. They write:.
A look at the spreadsheet using the Bespoke/Schwab data, shows the majority of sectors within the S&P 500 are �overbought� if you measure risk by the % of stocks trading above their respective 50-day moving averages.