The WHO (World Health Organization, not the 60s/70s rock band) announced that the coronavirus is a new PANDEMIC.
Or it is a bubble pop? Not tiny bubbles as Don Ho sang. But a BIG bubble … burst.
Yes, The Federal Reserve and other Central Banks kept their target rate near zero for almost the entire Obama Presidency, then started to raise rates only to lower them again. But the S&P 500 and NAREIT – all equity indices have risen dramatically as well.
A bear market in equities is when prices fall 20% from their peak. Over the past month, we are almost in a bear market.
Is this that fast 20% in history? Nearly.
And there is lots of downward rotation in global equities.
Yes, equity markets are fragile thank to the central banks. And now the bears have been awakened.