www.varchev.com

A bear market usually means more troubles are ahead

Rating:

12345
Loading...

Investors will have a hard time finding a place to hide should the S&P 500 keep trading in bear market territory, if history is any indication
.
A CNBC analysis using Kensho found that all 11 S&P 500 sectors average steep losses after the broad index plunges 20 percent or more in a six-month period. The analysis also shows 10 of those sectors average losses of at least 16 percent.

The financials, technology and industrials sectors all average losses of at least 30 percent in the six months after the S&P 500's drop. The consumer staples sector is the relative outperformer during these sell-offs, averaging a decline of 6.08 percent.

The S&P 500 entered Wednesday's session in a bear market, down 20.06 percent from an all-time intraday high set on Sept. 21 amid ongoing turmoil in Washington. Stocks entered bear market territory on Monday after the worst Christmas Eve sell-off in history.

President Donald Trump went after the Federal Reserve once again on Monday, calling it "the only problem our economy has" in a tweet. Trump also said the central bank does not "have a feel for the Market."

Multiple reports also surfaced last week claiming Trump was considering firing Fed Chairman Jerome Powell.

Meanwhile, Treasury Secretary Steven Mnuchin held calls with the leaders of the six largest U.S. banks in an attempt to reassure investors that the economy and financial markets were in good shape.

Source: CNBC


 Trader Georgi Bozhidarov

Read more:

RECCOMEND WAS THIS POST USEFUL FOR YOU?
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance

London


25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256

Universal numbers

World Financial Markets - 0700 17 600    Varchev Exchange - 0700 115 44

Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.

Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006

The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.


Disclaimer:

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

chat with dealer
chat with dealer
Cookies policy