Jackson补充道，Senior investor Eric Jackson believes that the US stock market may experience a situation where "everything is rising," especially in technology stocks. He pointed out that the current economic growth and interest rate environment reminds people of the early stages of the bull market in 1982, which was one of the best-performing bull markets in US stock market history.
Finance Associated Press, September 26th (Editor Huang Junzhi) Senior technology investor and founder of the hedge fund EMJ Capital, Eric Jackson, expressed that the US stock market may see a situation where "everything is rising," especially in technology stocks.
In his latest interview, he mentioned that the current economic growth and interest rate environment reminds people of the early stages of the bull market in 1982, which was one of the best-performing bull markets in US stock market history.
Jackson added that in the first 10 months of the 1982 bull market, the Nasdaq index surged by 107%.
He explained, "The last time the yield curve inverted for such a long period and then eventually reversed in a benign economic environment with falling interest rates was in August 1982."
"When this situation occurred, the US stock market saw a continuous 10-month rebound. The Nasdaq index rose by 107% during these 10 months. So I think we may see a rebound of everything," he added.
According to Jackson, this means that from small-cap technology stocks to large-cap technology stocks, all stocks will rise together.
In addition, data from FirstTrust shows that when the above situation occurred in the summer of 1982, the S&P 500 index began a five-year bull market, with a total return of 229%, an annualized return of 26.7%, marking the second-highest annualized return in history.
Jackson pointed out that the combination of the Fed rate cuts, economic growth resilience, and non-inverted yield curve overall favor risk assets, especially in the case of low inflation.
It is worth mentioning that until early this month, the 2-year US Treasury bond yield has consistently exceeded the 10-year bond yield since 2022, marking the longest period of inversion in history. US bond yield curve has always been a key indicator that the market pays attention to, as it can affect a range of asset prices and has always been seen as a signal of economic prospects.
The curve is usually upward sloping, so inversion often means that investors are more pessimistic about the long-term outlook and anticipate an impending economic recession. Inversions occurred in the months leading up to economic recessions in 2020, 2008, and 2001.
However, Jackson believes, "As the US economy is still in good shape, this time seems different from 1982."
Editor/ping