Bloomberg: Bernstein Quants Say $7.6 Trillion US Bear Market Has More to Go
(Bloomberg) -- US stocks are nursing losses of $7.6 trillion this year, but if history is any guide, they’re likely in for even more declines before the bear market is over, according to Sanford C. Bernstein quantitative strategists.
An analysis of the 15 major routs since 1937 shows peak-to-trough price drops averaged 28%, deeper than the current drawdown of 20%, the team led by analyst Ann Larson wrote in a note on Sept. 13.
The average bear market lasted seven-to-eight months and included three rallies with returns of 9% and lasting about 22 days on average -- in line with this year, they said.
“We believe this bear market has more room to run because most major global synchronized selloffs have ended with a moderate inflation/low growth regime, and we are not there yet,” Larson said.
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WNU Editor: It was another negative day for the markets today (link here). This crash, if it continues, is going to impact all of us (if not already).
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