Stocks crashing? No, but here's why this bear market feels so painful --- and what you can do about it.

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Stocks crashing? No, but here’s why this bear market feels so painful — and what you can do about it.

Hashtags about a stock-market crash may be trending on Twitter, but the selloff that has sent U.S. equities into a bear market has been relatively orderly, say market professionals. But it’s likely to get more volatile — and painful — before the market stabilizes.

Historically low interest rates and ample liquidity provided by the Fed and other central banks in the wake of the 2008 financial crisis and the 2020 pandemic helped drive demand for riskier assets such as stocks. That’s a hefty pullback, but it’s not out of the ordinary. In fact, it’s not even as bad as the typical bear-market retreat. Analysts at Wells Fargo studied 11 past S&P 500 bear markets since World War II and found that the downdrafts, on average, lasted 16 months and produced a negative 35.1% bear-market return.

Many economists contend the Fed can’t whip inflation without sinking the economy into a recession. Powell has signaled that a harsh downturn can’t be ruled out. The consensus 2023 earnings estimate has only come down 3.3% from its June highs, he said, “and we think those estimates will be revised lower, especially if the odds of a 2023 recession increase from here,” Grabinski wrote.

 

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Stocks crashing, YES!

Move out of stocks and use EFTs or indexes that are commodity based. Inflation will give them the growth and you the returns

Wellz not yet. Give it 6 weeks or so

Biden & Obama are good at this

We must be ready for a bear market

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