April 19, 2019

Welcome to the Bear Market

“So, is this selloff just a correction, offering a chance to buy cheap? That is certainly the easy, happy reaction. However, that view misses the key question: why would such an out-sized, temporary drop happen? If there is not a good reason for a short-term shakeout, then we are back to the concern that something large and untoward must be driving the selloff.

Judging from the latest news and more insightful reporting, there appears to be one big, bad cause: Slowing growth outlooks. Such slowdowns can have outsized effects on stocks as prices adjust for reduced fundamentals and reduced valuations. Magnifying those declines is the potential negative emotional effect, which increases if prices continue to drop.

To maintain a clear mind, focus on the key bear market indicators such as new lows

Back to the question of whether this is a bear market or a correction. One bear market characteristic, an item that can reveal a seriously negative environment is the widely followed list of 52-week stock price lows. Those are the stocks whose prices just fell below their previous low points, going back one year (today, that means from the end of October 2017).”

Read more

JJ Editor's Daily Picks

"After five years of war with the Islamic State, the biggest problem for the winners is coping with the losers. The aftermath has produced one of the world’s most perplexing postwar challenges..."

"What do we mean when we say that the “soul of the city” is under threat? Often, it’s really about politics, nostalgia, and the fear of community change."

"...the pendulum of history never stops moving. Indeed, one of the few constants of history is unceasing change. While we seem to be heading in one direction, we must remember that there will surely be pauses, turns, and reversals."

""Homecoming: A Film by Beyoncé," premiered early Wednesday and it was the fulfillment of all the ancestors' hopes and dreams. Beyoncé also dropped "Homecoming: The Live Album.""

"Seven in 10 adults ages 18 to 34 received financial support from their parents in the last year, including more than half of those in their early 30s. Almost three in five millennials said they couldn’t afford their lifestyles without the support."

"Social media influencers have helped turn public lands into tourist-infested swamps. And one cantankerous man is fighting back."

"One particular myth that attached itself to Ledger was that his death was somehow a result of immersing himself in the character of the Joker."

"In 2018, for the second year in a row, American publishers released fewer translated titles: 609 books were published, down from 650 in 2017 and the industry high in 2016 of 666."

"Egg freezing had become so routine among my single peers that when I hit 35, I never thought twice. Here’s what I wish I had known."

"When it comes to Passover cuisine, most home cooks know to avoid wheat, oats, rye, and other forbidden ingredients. But what consumers might not realize is just how much cotton they eat during the holiday."

"A masked figure looms over your recumbent body, wielding power tools and sharp metal instruments, doing things to your mouth you cannot see."

"Passover is a holiday that commemorates the Jewish people escaping slavery in Egypt. It is often referred to as the “festival of freedom.” My Passover in prison was at a place called the Wallkill Correctional Facility..."