The Beginning of a Bear Market?

By: ETFdb
As of Monday’s close, the S&P 500 was down roughly 6.5% year-to-date, while the broader global MSCI ACWI Index was down around 9% in dollar terms. Meanwhile, other segments of the market are already in correction territory (down 10% or more year-to-date). Emerging markets were off 10% at the lows, U.S. small caps down 13% and energy stocks lost more than 18%, as measured by the MSCI Emerging Markets Index, the Russell 2000 Index and the S&P Global Energy Index respectively. Even with equities rebounding on Tuesday, the events over the past week beg the question: Are equities experiencing an overdue correction or the start of a bear market? My take is that absent a geopolitical shock, we’re experiencing what’s likely to be a painful correction, but not the start of something nastier, like a prolonged period of sustained selling. Here are two reasons why. Valuations aren’t cheap, but they’re nowhere close […] Click here to read the original article on ETFdb.com. Related Posts: No Related Posts
As of Monday’s close, the S&P 500 was down roughly 6.5% year-to-date, while the broader global MSCI ACWI Index was down around 9% in dollar terms. Meanwhile, other segments of the market are already in correction territory (down 10% or more year-to-date). Emerging markets were off 10% at the lows, U.S. small caps down 13% and energy stocks lost more than 18%, as measured by the MSCI Emerging Markets Index, the Russell 2000 Index and the S&P Global Energy Index respectively. Even with equities rebounding on Tuesday, the events over the past week beg the question: Are equities experiencing an overdue correction or the start of a bear market? My take is that absent a geopolitical shock, we’re experiencing what’s likely to be a painful correction, but not the start of something nastier, like a prolonged period of sustained selling. Here are two reasons why. Valuations aren’t cheap, but they’re nowhere close […]

Click here to read the original article on ETFdb.com.

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