Q&A: U.S. stocks just ‘corrected,’ a regular but still scary event

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Q&A: U.S. stocks just ‘corrected,’ a regular but still scary event GlobeInvestor

This translation has been automatically generated and has not been verified for accuracy.The stock market’s current slide hit a big milestone Thursday after indexes got pounded for a sixth straight day.

Fear is now strong that this correction may turn into another bear market, which is what traders call a drop of at least 20%. But some investors are expecting the Federal Reserve and other central banks to swoop in and support the market as they have numerous times over the last decade. For declines that metastasize into bear markets, the damage is much worse. Going back to 1929, the average bull market has taken an average of 21 months to complete and brought with it a loss of nearly 40% for the S&P 500, according to S&P Dow Jones Indices.A: In late 2018, investors were worried that the Federal Reserve was raising interest rates too quickly and could force the economy into a recession. They were also worried about the U.S.

 

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globeinvestor LOL, the indexes aren't 'out of the woods' by any stretch, yet...

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