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The volatility that has rocked Wall Street since the outset of 2022 manifested with stunning intensity this week, and now a hearty chunk of the pandemic-era gains is gone, taking 401(k) and other investors along for the anxiety-inducing ride.
On Monday, the S&P 500 tumbled nearly 4 percent to cross into a bear market meaning the index has lost 20 percent of its value since its most recent peak signaling the end of the frenetic stock rally that followed the markets pandemic-fueled meltdown. And because some view it as a harbinger of recession, it can reinforce investor angst and potentially trigger even deeper losses.
Investors are up against what is probably the most complex macro backdrop in a century, according to Dan Ives, managing director of Wedbush Securities, as the economy reckons with the coronavirus crisis, supply chain breakdowns, a war in Ukraine, runaway inflation and rising interest rates.
While no one knows how long a bear market will last, past bears can offer some insight into what it means for the broader economy. heres why:
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Sources 2/ https://www.washingtonpost.com/business/2022/06/14/what-is-bear-market/ The mention sources can contact us to remove/changing this article |
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