Bloomberg Intelligence's 'Equity Market Minute' 6/01/2022

Gina Martin Adams discusses the elusive technical signs of capitulation in the S&P 500 despite a 20% market drop. She highlights fundamental capitulation, showing that the stock bubble has burst. Valuation multiples in the S&P peaked at over 31 times trailing earnings a year ago, dropping to 16.3 times at the recent low, similar to the 1999-2002 bubble burst but at a faster pace. Deep value has emerged, with 17% of S&P 500 constituents trading at low multiples. While not as evident as in 2018 or 2020, capitulation signs are nearing. The video concludes with thanks for joining the equity market minute by Bloomberg Intelligence.

What is the main reason technical capitulation in the S&P 500 is considered elusive?

• Despite a 20% market drop, technical signs are not clear.

• The stock bubble has not burst.

• Fundamental capitulation is not evident.

• The market has not dropped significantly.

How does the recent valuation multiple compression in the S&P 500 compare to the 1999-2002 bubble burst?

• It is slower and less severe.

• It is similar but occurred three times faster.

• It is more severe and slower.

• It is identical in pace and severity.

What percentage of S&P 500 constituents traded at multiples lower than 10 times forward earnings at the recent low?

• 10%

• 17%

• 25%

• 5%

How does the current deep value in the S&P 500 compare to the 2016 market low?

• The number of stocks is the same.

• Fewer stocks are trading at extreme valuation lows now.

• More stocks are trading at extreme valuation lows now.

• There is no comparison available.

Which past market events are mentioned as not quite matching the current capitulation evidence?

• 2000 and 2004

• 2018 and 2020

• 2010 and 2014

• 2008 and 2012