Bear Market Mauls S&P 500, Dow Jones: How Long Will It Last?
The comments below are an edited and abridged synopsis of an article by ValueWalk
The bear market in the S&P 500, the Dow and almost every US stock continues to deepen. Meanwhile, analysts debate how much further they have to fall before they reach a bottom and begin to stabilize. The bears are out in force now and have seized control of equities with a vengeance.
Up for discussion: A bear market in the S&P 500 and the Dow; when will the S&P 500 stabilize; how much more should the S&P 500 and the Dow fall in a bear market; and the S&P 500 and the Dow in an event-driven bear market.
Finally, in past cases of viral shocks, like the SARS outbreak, stock markets tended to rebound when the second derivative of infections began to improve. Although this may be true in China, it’s obviously not true in other parts of the world. Thus, the “fear factor around the economic shock from preventative measures may push markets further down in the meantime.”