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Pessimism of disbelief - best foundation for stock market recovery

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    • An oil pump jack in a field near Calgary, Alberta, Canada. Higher oil prices are among a cocktail of worries keeping investors pessimistic and priming the market for a rebound.
    • An oil pump jack in a field near Calgary, Alberta, Canada. Higher oil prices are among a cocktail of worries keeping investors pessimistic and priming the market for a rebound. REUTERS

    DeeperDive is a beta AI feature. Refer to full articles for the facts.

    Ken Fisher

    Published Mon, Oct 3, 2022 · 05:50 AM

    HOW far will stocks fall? That question is foremost on investors’ minds following the Straits Times Index’s decline in the past week as global stocks hit new lows.

    The bad news? No one can pinpoint when stocks will turn up, especially since this bear market is so heavily sentiment-swayed. Its agonising length stems from the fact that myriad fears fuel it.

    The good news? It resembles most latter-stage bear markets in one key way: It has spawned what I call the pessimism of disbelief, which is the foundation for a recovery.

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