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A Stock Market Crash Is Official: Stock Market Closes In Bear Market Territory
Not too long ago, I wrote about how the stock market entered a bear market on an intraday basis. Yesterday, however, the market finally closed in a bear market. Here, what I mean by ‘stock market’ is the S&P 500. The Dow Jones Industrial Average hasn’t yet entered a bear market but it’s close, and there’s no reason to think it won’t join the S&P 500 (and Nasdaq) in a bear market. And while the Dow Jones is remarkable because of how old it is, it’s price-weighted (instead of market-cap-weighted like the S&P 500) and only includes 30 stocks.
I’ve previously talked about the stock market bouncing off bear market territory in 2011 and 2018; however, the market never closed in a bear market during those periods, unlike now/yesterday. So, now we have more evidence that we aren’t just going to bounce from here and continue a bull market (i.e. trend higher). On the other hand, to be perfectly frank, nobody knows for sure where the market will go.
The only thing I can see reversing the downtrend is a reversal in monetary policy. That…
