Bear market to arrive next week?
Economists and analysts are predicting that a bear market will arrive some time next week. The pessimistic sentiment that accompanies such a market arrived some time ago.
The general consensus on how low the market must go to declare a bear market is at least 20 percent from its high. There is no consensus on the time frame in which this drop should occur, but most agree it is a couple of months.
Has the bear arrived? Well, the S&P 500 is used most frequently as “the market” and it is down over 18 percent since last October.
So, technically, no the bear is not here yet. While it may not be here, it is definitely close.
Tags: bear, MarketRelated Stories
POSTED IN: Economy, Investment, Market, News
4 opinions for Bear market to arrive next week?
Gregory Pontrelli
Jul 1, 2008 at 6:11 pm
Tollbrothers construction has a rule: It doesn’t build in a location that is vacant of a Starbucks, believing that Starbucks signifies that the local economy, consumer confidence, and therefore spending, is strong. (and therefore also good for real estate)
That being said, I wonder what is to be said about the entire market, since starbucks has just announced it will be closing 600 stores nationwide.
The starbucks indicator?
Tim Turner
Jul 2, 2008 at 5:57 pm
Forget spiraling out of control we are in a freefall. John Carter, the president of Trade the Markets (some POS looking website), said, “A trend is a trend until it ends, and we’re actually looking for the Dow to take out 10,000 by the end of the year.” Grrrrr, you bear you! Way to instill confidence in American markets! I also heard that Merrill Lynch thinks that bankruptcy is not out of the question for GM, yikes! Goodbye economy it was fun while it lasted.
moneypenny
Jul 4, 2008 at 5:27 am
Good article and food for thought Tisa. Thought this may be good to link to
http://www.digitalmoneyworld.com/what-we-can-lea
rn-from-buffet-in-down-times/
Donna
Rob Curl
Jul 13, 2008 at 12:01 pm
With the price of fuel putting a tax on everyone’s spending, an abundance of unsold houses on the market and subsequent lack of construction from new houses, a financial sector that resembles an iceberg in an Al Gore documentary, an increase in job cut announcements, and rising food prices, can any investor really be optimistic? Especially when the government’s big solution is simply giving people enough money for about 10 tanks of gas, which resulted in a momentary spice in consumer spending below expectations, while consumer confidence continued to fall. Whether we can call it a bear market or not, it’s clear that they’re definitely clawing at the indexes prices. My solution… short those bad boys and hedge with strong global companies.
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