After a powerful rally from the 2020 COVID lows, equity markets have had a rough start to the year. The US market in particular has experienced a sharp performance reversal and is currently down 18% from its early January peak (as at May 18). Australian equities have fared better, albeit they are still 7% lower from their early January high.
The US market’s 18% decline puts it close to the technical definition of a bear market, a decline of 20%. We have examined the history of significant “corrections” and “bear markets” over the past 50 years to provide some perspective around current market weakness. In this report we:
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David is one of Australia’s leading investment strategists.