Bloomberg Intelligence's 'Equity Market Minute' 10/6/2022

Gina Martin Adams discusses the Market Pulse Index, which identifies extreme panic and mania in the equity market. As of September, panic levels were high, comparable to historical periods like 2001, 2008, 2011, and 2016. Despite the fear, three of these periods were followed by strong market returns, except for 2001. The S&P 500 showed an 11% return over 12 months after these lows, increasing to 22% when excluding 2001. Extreme fear can sometimes lead to positive stock outcomes.

What does the newly released market Pulse Index aim to detect?

What indicators are used in the composite to assess market fear?

Which years are mentioned as having extreme fear in the market?

What was the S&P 500's recorded return over 12 months after the lows in the market gauge, excluding 2001?

How can extreme fear in the market sometimes be beneficial for stocks?