The economy is facing some very difficult circumstances, and the global financial system is in a state of crisis.
Although we are only 160 days into the current bear, history shows that a bear market can be even more brutal than we've seen.
Stock valuations reached historic highs before the most recent bear began, so it's possible that more downside is yet to come.
At an average bear market level, stocks will fall 10%. That would translate to the SPY stock dropping to $330.
The 2007 to 2009 bear market was driven by home prices that were far overvalued.
This created a problem in the entire financial system and eventually led to government intervention.
The next major event that set off the bear market in 2022 was the Russian invasion of the Ukraine, sending energy prices through the roof.
At the same time, China's economic lockdown led to supply chain woes and shortages. Meanwhile, mortgage rates soared to over 5%.
The length of a bear market depends on many factors, including earnings. If earnings continue to fall, investors will likely sell stocks, leading to further deterioration
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