SocGen: Watch These 3 Signs To Know When The Bear-Market Rally Is Over

When will the current market rally end?

In a note, SocGen identifies three signs.

First, excessive investor optimism.

Based on SocGen’s proprietary measure, we’re actually getting close on this.

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Photo: SocGen

Next is Treasury yields. When you see UST yielding 2.5%-3.0%, that will be a sign that the bear market rally is over.

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Photo: SocGen

And finally, CDS spreads on Western European countries. When they start to narrow, that will be the third sign.

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Photo: SocGen

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