Here’s Why This Bear Market is a “Global Story”
“The decline started in emerging market stocks way back in February 2021”
by Bob Stokes
Updated: October 18, 2022
A widely accepted measure of a bear market is a drop of 20% or more in a major index from an all-time high.
By that measure, both the S&P 500 index and the Dow Industrials have entered bear market territory since their January peaks.
Yet, Robert Prechter's Conquer the Crash offers a message for those entirely focused on U.S. stocks:
The emerging bear market is a "global story."
That assessment is certainly validated by this chart and commentary from our October Elliott Wave Financial Forecast:
The decline started in emerging market stocks way back in February 2021. It spread to major world stock markets, excluding the U.S., in June 2021. Both these indexes fell below their early 2020 peaks earlier this year. The top graph shows the Dow Jones Industrial Average, which peaked on January 5 of this year and [in the week of Sept. 19-23] declined below its early 2020 high.
Another message which Conquer the Crash emphasized is the "all the same market hypotheses." As the book notes:
When stocks turn down, it will signal a major liquidity contraction, and all major asset classes should decline together.
This message is also being currently confirmed. Let's return to the October Elliott Wave Financial Forecast:
Clearly, liquidity is waning as normally disparate assets are starting to trend together. [In the last half of September], for instance, the decline in stocks was joined by a decline in bond prices, precious metals, FOREX, commodity indexes and oil.
There's even been a correlation between stocks and Bitcoin.
Now is the time to prepare for what is likely ahead.
An ideal way to prepare is to tap into the insights provided by our Crash Protection Collection, which includes the 3-book set of Conquer the Crash, Last Call and Forecast for the Bear -- all written by Elliott Wave International President Robert Prechter.
Learn how you can access the Crash Protection Collection for free by following the link below.
Liquidity is Waning. That Means …
...Most financial markets will likely go down together.
History suggests that most investors will be unprepared for what's likely ahead.
Yet, you can be different.
Avail yourself of Elliott Wave International's Crash Protection Collection, which includes the 3-book set of Conquer the Crash, Last Call and Forecast for the Bear.
Together, these three volumes discuss how we got here, what's next and how you can prepare for the next phase of the bear market.
The Crash Protection Collection is valued at $167. You can get it now for only $129 -- a 22% savings.
Find out how to get this 3-book set for free when you lock in a year of our flagship Financial Forecast Service by clicking the link below the button.
Get the Crash Protection Collection Now
The Treasury Bond: We Forecast the Turn From a 12-Year Low (plus what followed)
October 2022 saw a huge turn in Treasury Bonds. The turbulence since then includes the banking sector crisis. See our forecast on the day of this pivotal juncture -- plus what exactly what our Short Term Update has said in the time since.
Wheat Had the Ultimate Bullish Boost – War! So Why Did It Go Bust Instead?
When Russia invaded Ukraine, news stories said "no end in sight" to the spike in wheat prices. Yet prices soon went bust. Why? See the contrary chart and commentary we showed Commodity Pro Service subscribers.
PTPC: The Stock Market is Riskier Than Economists Realized
Everyone knows financial markets are risky. But just how risky are they? Economists thought they knew, but it turns out that they had underestimated market risk by several orders of magnitude. Discover why and learn about a perspective that can help you get a better grasp on risks in the markets and everyday life.