Is the Bear Market Done…or Just Waking Up?
- By John Tierney
- 3 min read
Summary
- The advent of a bear market always prompts questions about how bad it can get.
- Happily, few bear markets get much worse than a 20% selloff. But those preceded by bubble-fuelled markets tend to be super bear markets with declines of 40% and more.
- The pandemic rally was clearly a bubble. It took a bear market for the S&P 500 to return to something like fair value.
- Whether the bear will be satisfied with a big growl or is just waking up will depend on a host of geopolitical factors well out of most companies’ control.
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