WALL STREET AT “BEAR MARKET”

?The week of May 6, 2022, it was detected in the joint investigation departments of several of the most important organizations in the world.?

That we were facing a "Bear Market" and that the next 60 days (from that date) would be crucial for the international economic ecosystem.

But times are ahead and today we are living the crest of the wave of those forecasts.

The United States Securities and Exchange Commission (SEC) defines that, for a market to be considered within the “Bear Market” zone, a “Bear Market” situation must exist.

?That is to say that the indices have to fall by 20% or more during at least a period of 60 days.

?In Free Fall

World stock indices continue to fall and hit their lows in 2022. Entering new “bear” market territory as a consequence of the financial universe almost accepting in a recession”.

???The fall in stocks this Monday, took the S&P 500 to a new low of 2022 and back to bear market terrain.

The main New York stock indices deepened the losses of the last charts, as a result of the "high inflation" of the United States and in this way Wall Street entered what is called "Bear Market", that is to say a bearish market that is experiencing a "prolonged price decline”.

Some Examples of “Bear Market”

Since 1929, 26 “Bear Markets” have been experienced, that is, a phenomenon of these characteristics occurs every 1,278 days or every 3 and a half years.

?But this year's declines mark a faster-than-average decline into bearish territory that had been recorded, "with 111 trading days since the index's all-time high on Jan. 3, 2022”, according to the IMF.

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Note

Only the 1987, 2009 and 2020 bear markets took fewer days to achieve a 20% drop among the last 10 Bear Markets.

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"History says it will probably get worse before it gets better."?George Soros.

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The Most Important

?1 The Great Depression (of 1929).

2 The financial crisis of 2008 (collapse of the housing bubble in the United States).

3 The 2020 stock market crash, due to the coronavirus pandemic.

These are the most notable events that generated heavy losses on Wall Street and impacted share prices in all areas of international society.

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Taking on the Recession

The Bureau of Labor Statistics (BLS) reported on Friday that the US consumer price index rose 8.6% last month from a year earlier.?

This was the fastest increase since December 1981.

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Hot News !

The Fed just raised rates by 0.75% following Friday's US price report. This means a collapse of the currencies and assets of other countries, which will be affected in the withdrawal of funds in search of high and unprecedented US rates.

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BOTTOM LINE

In statements today, J. Powell referred to the fact that inflation will not be eternal, but that it will not end soon. Believing they are doing the right thing.?

"It seems that the Fed lost sight of inflation".