By
Bilal Hafeez
22-09-2020
How Far Could US Stocks Fall?
(1 min read)
Global stocks have tumbled in recent days given a combination of fears over a second COVID wave in Europe, lingering disappointment over the Fed, banking concerns and overleveraged investor positioning. But US stocks have led the way and have been weakening since early September (Chart 1). The S&P500 is now down over 8% since its peak.
To put this into context, we look at S&P500 drawdowns, or declines from peaks, since the start of the bull market in 2009. The latest drawdown ranks as the 8th worse over this period (Chart 2). There were similar drawdowns in 2012 and early 2010 before markets rallied again. However, there have been six where the drawdown was more protracted and ended up ranging from -14% to -34%.
To put this into context, we look at S&P500 drawdowns, or declines from peaks, since the start of the bull market in 2009. The latest drawdown ranks as the 8th worse over this period (Chart 2). There were similar drawdowns in 2012 and early 2010 before markets rallied again. However, there have been six where the drawdown was more protracted and ended up ranging from -14% to -34%.
TO READ THIS HIVE EXCLUSIVE
SUBSCRIBE TO MACRO HIVE PRIME
£39/month thereafter
For access to our Slack Chat Room, where we discuss all things markets with our researchers and subscribers
