Stocks are mirroring the early days of one of history’s biggest bull markets, hedge fund manager says

• Hedge fund manager Eric Jackson believes the “everything rally” in the stock market could continue.

• Jackson compared the current economic environment to the bull market of 1982, when prices fell and the economy grew.

• Lower interest rates, economic growth and yield curve shifts are working in favor of risky assets, Jackson said.

Hedge fund manager Eric Jackson of EMJ Capital said the ongoing stock market rally could turn into an “everything rally.”

In an interview Tuesday, Jackson told CNBC that the current environment of economic growth and interest rates is reminiscent of the early days of the 1982 bull market, one of the best-performing stock market developments of all time.

The first ten months of the 1982 bull market saw Nasdaq It’s up 107%, according to Jackson.

“The last time the yield curve inverted for a long period and then finally pushed up in the way we have seen recently, in a benign economic environment where rates are falling, was in August 1982,” Jackson said.

“And when that happened, there was a 10-month bull market. The Nasdaq was up 107% in those 10 months. So I think we could see a bull run in everything,” he added.

That means, according to Jackson, that everything from small-cap tech stocks to mega-cap tech stocks will rise together.

Combine Interest rate cuts by the Federal Reserve, Resilient economic growth, and yield curve non-inversion Emerging markets as a whole provide a favorable environment for risky assets, especially if inflation remains under control.

When a similar scenario occurred in the summer of 1982, Standard & Poor’s 500 The Financial Times has launched a five-year bull market that has delivered a total return of 229% and annual gains of 26.7%, the second-highest annual gains on record, according to data from FirstTrust.

The failure of the yield curve on the two-year and ten-year US Treasury bonds to invert is significant because it has been in negative territory for nearly 26 months, the longest in history.

yield curve It finally turned positive earlier this month.

A yield curve that oscillates between positive, negative and positive A reliable recession indicator, But with the economy still in good shape, this time seems to be different, as it was in 1982.

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