.IXIC

.SPX

<p>How did the core asset bubble in the history of US stocks come to an end? Huatai Securities believes that the relative profit trend in history runs through the beginning and end of two core asset bubble market trends. Structural funds accelerating entry and exogenous impact affecting structural risk preferences are important factors in market interpretation. Event shocks make the bubble begin to shake and burst at the high point of monetary policy tightening</p>

- Recent volatility in the US stock market has raised concerns about a potential bubble or market peak. Historical analysis shows that market fragility and high levels of monetary tightening have preceded previous market downturns. The current US stock market indicators suggest similarities to past market peaks, with around 64% of the top indicators lit, resembling the conditions before previous market bubbles burst.
- The formation of bubbles in the US stock market historically correlates with shifts in economic dynamics, industry competitiveness, and monetary policies. The end of previous core asset bubbles coincided with high market fragility and tight monetary policies, often triggered by external shocks like the oil crisis. Profit trends have consistently influenced the trajectory of these bubble markets.
- The end of core asset bubbles in the US stock market has typically occurred during periods of high monetary policy tightening, leading to market fragility and eventual bursts. External shocks, such as event impacts and profit trends, have played crucial roles in triggering the collapse of these bubbles, emphasizing the importance of monitoring relative profit trends throughout market cycles.

How did the historical core asset bubble in the US stock market come to an end?