Is a New Bull Market Coming? Here's a Better Question to Ask
When the Federal Reserve announced a quarter-point interest rate hike and no major surprises earlier this month, it was one more sign of hope for investors that the Fed's aggressive rate-hiking campaign would soon end. Stocks roared higher on the news, and at Tuesday's prices, the S&P 500 (SNPINDEX: ^GSPC) was up more than 16% from its October lows.
Does this mean a new bull market is coming? Well, maybe -- there are many definitions, but one thing they have in common is a 20% rebound off bear-market lows. But if you're looking for signs of a turnaround in the economy, there's a better question to ask: What will happen to interest rates this year?
Rising interest rates were the main culprit behind the market meltdown in 2022. As the economy began to recover from the pandemic shutdowns, high levels of inflation snuck up on the Fed faster than anticipated, and the central bank had to hurry to catch up.
Source Fool.com
