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什么是熊市(Bear Market)?

bear market

Recent Examples on the Web Just over 9 months and the average bear market is done. — Q.ai - Powering A Personal Wealth Movement, Forbes, 3 Aug. 2022 Like its peers, Apple stock has taken a shellacking during the current bear market. — Larry Light, Fortune, 14 July 2022 Attention, retirement savers: Don’t get spooked by the bear market and forget about doing a Roth IRA conversion. — Laura Saunders, 什么是熊市(Bear Market)? WSJ, 24 June 2022 During the 2017 to 2018 crypto bear market, bitcoin plummeted 83%, from $19,423 to $3,217. — Nicole Goodkind, CNN, 18 June 2022 What may be making the meltdown worse than the bear market afflicting stockholders is that crypto doesn’t have any value in the real world. — Michael Hiltzik, Los 什么是熊市(Bear Market)? Angeles Times, 16 June 2022 With Thursday’s decline, the S&P 500 is now almost 24 percent below its Jan. 3 peak, plunging deeper into the bear market that officially began on Monday. — New York Times, 16 June 2022 The biggest decline since 1945 occurred in the 2007-2009 bear market when the S&P 500 fell 57%. — Aimee Picchi, CBS News, 19 May 2022 Grim Outlook: Investors had an awful start to the year as stocks twice entered bear market territory, and further losses may be on the way. — New York Times, 27 July 2022 See More

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'bear market.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

A key economic bellwether just fell into a bear market - and it'什么是熊市(Bear Market)? s happened before every recession in the last 30 years

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Copper

  • Copper has entered a bear market, which may indicate a stronger chance that recession is coming.
  • The metal, which is an economic barometer, fell 24% from its peak in 什么是熊市(Bear Market)? May 2021 on Friday.
  • The risk of a recession is gathering pace as interest rate hikes and inflation 什么是熊市(Bear Market)? choke global growth.

Copper has just tipped into a bear market and it's happened before each recession 什么是熊市(Bear Market)? in the last 30 years, which could indicate another economic downturn may be underway.

It's used in everything 什么是熊市(Bear Market)? from electrics and electronics to construction, meaning it's intertwined with the underlying global economy. The benchmark London 什么是熊市(Bear Market)? Metal Exchange copper price has now fallen 24% from its peak above $10,700 a tonne in May 2021 什么是熊市(Bear Market)? Friday to trade at $8,255 a ton. A fall of more than 20% from a previous peak 什么是熊市(Bear Market)? is the technical definition of a bear market.

Recessionary fears have picked up speed, fueled by rapidly rising interest rates and red-hot inflation, with some of the world's biggest banks including Goldman Sachs, Morgan Stanley, and 什么是熊市(Bear Market)? Citi increasing their expectations of a recession hitting the US economy, as the cost of food, fuel and housing 什么是熊市(Bear Market)? continue to squeeze the consumer.

Copper is on track for a 19% decline in the three months from 什么是熊市(Bear Market)? March to June, making this its worst quarterly performance since the first quarter of 2020, which witnessed the depths 什么是熊市(Bear Market)? of the coronavirus crisis.

"These moves suggest that the market's sensitivity to recession risks has stepped up," Jane Foley, Rabobank senior FX strategist said.

Nomura, a leading Japanese investment bank, also predicted the US economy 什么是熊市(Bear Market)? would tip into a recession this year.

The Fed lifted the benchmark interest rate three times faster than usual by 0.75 percentage points earlier this month as the US struggles in its war with inflation. It was responding to data from the US Consumer Price Index that showed inflation rose by 8.6% through 什么是熊市(Bear Market)? May driven by a surge in energy prices.

Most recently, Federal Reserve Chair Jerome Powell fanned the flames on 什么是熊市(Bear Market)? 什么是熊市(Bear Market)? the chance of recession saying it is not an intended outcome but is certainly a possibility. At the 什么是熊市(Bear Market)? same time, he declined to rule out a 100 basis point interest rate hike while expressing his "unconditional" commitment to fighting inflation.

Stocks have tumbled into bear-market territory, as have cryptocurrencies, as investors have ditched assets that 什么是熊市(Bear Market)? stand to lose from an environment of higher rates and inflation.

Meanwhile, "Dr Copper" — which earned its nickname from what some believe is its tendency to gauge the health of the economy — is suggesting those fears could become more of a reality given that it's fallen into a bear market in the run-up to each of the last four recessions dating back to 1990, as the chart below shows.

For example, 什么是熊市(Bear Market)? the dotcome bubble burst in the early weeks of 2001, triggering a recession that would last through the remainder 什么是熊市(Bear Market)? of that year. But copper had already peaked in September 2000 and had already lost roughly 20% when the stock market started to tumble and economic growth slowed.

"The market has become concerned about a slowing in global growth, driven by fears surrounding Chinese output and the headwinds to growth in Europe," Rabobank's 什么是熊市(Bear Market)? Foley added.

Bank of America strategists said it was worth noting how copper behaved in the last aggressive rate-hike cycle of 1979/80, which also ended in recession.

"Copper did not decline wile rates were rising, but 什么是熊市(Bear Market)? the metal ultimately came under pressure when the economy contracted. Hence, increased recession risks do matter," they said.

It'什么是熊市(Bear Market)? 什么是熊市(Bear Market)? s time to 'play defense' with stocks experiencing a classic bear-market rally, Wells Fargo warns

Stocks won't exit 什么是熊市(Bear Market)? the bear market until the Federal Reserve's last interest rate hike, according to Wells Fargo.

Investors need to be cautious despite major indices' recent gains, CIO Darrell Cronk told Bloomberg TV.

"This very much looks 什么是熊市(Bear Market)? like a bear market rally… you've got to play defense," Cronk said.

It's time for investors 什么是熊市(Bear Market)? to get defensive and consider jumping out of stocks, which look caught in the middle of a bear-market rally, according to a Wells Fargo investment chief.

Darrell Cronk told Bloomberg TV he's skeptical about how well equities will perform over the rest of 2022, even though the S&P 500 has climbed more than 15% since hitting a low for the year in June.

"This is the question: Is this a bear market rally or the start of a new bull?" Cronk, CIO for Wells Fargo Wealth and Investment Management, said on 什么是熊市(Bear Market)? 什么是熊市(Bear Market)? 什么是熊市(Bear Market)? Friday. "This to us very much looks like a bear market rally."

"People forget that as bear markets get older, the bear market rallies get larger. This is the largest one we've seen, we've had six S&P 500 rallies during this bear of 7% or greater."

He believes the S&P 500's recent rally isn't sustainable, given the US benchmark has failed since April to break above its 200-day moving 什么是熊市(Bear Market)? average. If stocks rise or fall through this key resistance level, it's seen as a change in long-term direction.

"The fact that we've failed off the 200-day to us still says that you've got to play defense," Cronk said — suggesting they pivot away from stocks, and into less risky and volatile markets such as bonds or cash.

The Wells Fargo CIO said bear markets don't end three things happen: housing market forward indicators hit a bottom, earnings estimates fall significantly or trough, and the Federal Reserve is on the verge of stopping its interest rate hikes.

"You've got to get closer to the Fed being at or within sight of their last interest rate hike," he said. "We think we're still probably at least six months away from that."

"So, bear market rally — play defense here from a risk standpoint," Cronk said.

Markets have gained thanks to some investors' expectations that the Fed will pivot to start cutting interest rates soon. But Wall Street strategists have warned that the US central bank's current 什么是熊市(Bear Market)? 什么是熊市(Bear Market)? hiking cycle won't end until 2023.

Analysts at Goldman Sachs, Bank of America, and HSBC all said last week that the Fed will likely continue to hike until nominal rates are at 4%, around 150 basis points above their current level.

Are We Seeing the Failure of a Bear Market Rally or Just a 什么是熊市(Bear Market)? 什么是熊市(Bear Market)? Healthy Pullback?

Stocks are set to gap lower to start the week. It is not a big surprise that the market is finally undergoing corrective action after a fast and furious run, but the billion-dollar question is 什么是熊市(Bear Market)? 什么是熊市(Bear Market)? how far it will go. Is this just a reset that will set the stage for another push higher, 什么是熊市(Bear Market)? 什么是熊市(Bear Market)? or is it the failure of a bear market rally that the pessimists have warned us about?

The 什么是熊市(Bear Market)? good news is we don't need to answer that question today, but we do need to increase our 什么是熊市(Bear Market)? vigilance and be ready in case the selling pressure accelerates. The S&P 500 can pull back to 4,什么是熊市(Bear Market)? 160 or so without doing major technical damage, but such a move would cause some pain and there likely will be some rotational action that is going to be harder on sectors such as growth, biotechnology, small-caps 什么是熊市(Bear Market)? and technology.

The thing that is particularly interesting about the market right now is how quickly the narrative is shifting. During the big run off the June lows, the narrative was that the market had already priced 什么是熊市(Bear Market)? 什么是熊市(Bear Market)? in the worst and that it could handle a hawkish Fed. There was increased optimism that the strong labor 什么是熊市(Bear Market)? market would provide enough strength to withstand a series of rate hikes and avoid a recession. The drop in energy and commodity prices also provided hope that inflation had peaked.

Last week the narrative started to become 什么是熊市(Bear Market)? less positive. The Fed has made it clear that it is not likely to pivot to a more dovish stance very quickly, and there is increased debate over whether the unemployment rate needs to increase in order to effectively deal with inflation.

Some bulls contend that there has never been a bear market bounce of this magnitude that did not produce a bottom. We shall see, but we have never had economic conditions similar to this at this stage of the market cycle. I have little confidence that there is a historical precedent for this market.

As I've been discussing, I have raised quite a bit of cash into the 什么是熊市(Bear Market)? recent strength primarily because many stocks I favor have become technically extended and I am not seeing many good entry points. Even after a few days of weakness, it is still going to take more work for 什么是熊市(Bear Market)? 什么是熊市(Bear Market)? better charts to develop.

This is the time for caution. Don't be in a rush to put 什么是熊市(Bear Market)? 什么是熊市(Bear Market)? valuable capital back to work. If you are going to trade, then keep time frames short and don't forget that we are going to be dealing with negative seasonality for a while.

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