Thought it would be after the 2020 election.
And had no idea it would come as the primary result of a pandemic.
It’s the end of a bullish era for the stock market and the beginning of a new phase of bearishness, after a sharp plunge for risk assets on Wednesday pushed the Dow Jones Industrial Average into bear-market territory for the first time in more than a decade. Equties deepened their slide on Thursday.
U.S. stock indexes have been locked in a powerful downtrend that saw all three major U.S. equity gauges set to close in bear-market territory, commonly defined as a decline of at least 20% from a recent peak. On Wednesday, the declines deepened after the World Health Organization declared COVID-19, the infectious disease that was first identified in Wuhan, China, in December, a pandemic.
Always look for the bright side, right? Here you go:
There is some hope, however, that a stint in bear-market territory will be short-lived if the viral outbreak is effectively mitigated by governments and central banks across the globe. Historically, the period in the jaws of a bear can be lengthy.
On average, a bear market for the Dow lasts 206 trading days, while the average bear period for the S&P 500 is about 146 days, according to data from Dow Jones Market Data.
Cool. Calm. Collected. Patient.
The American economy is resilient and will bounce back.
Grace & Peace & Love to you all -
Matt