If you don’t think a bear market can occur while the US economy is growing, think again.
It would certainly be great if economic growth provided reliable protection from the bear market.For example, the conference committee All US real GDP growth rate of 6.6% in 2021..Bank of America Forecast growth rate of 6.5%.. Both estimates are more than double the average annual growth rate of 2.7% over the last 50 years.
Opportunity to blame you for wishful thinking about bear markets and economic growth The National Bureau of Economic Research’s recent pandemic recession announcement ended 15 months ago... The bears on Wall Street ended at about the same time, so it’s unacceptable to think that the two are highly correlated.
But you would be wrong for two reasons. First, the stock market expects a recession in the coming months. This means that when the bear market begins, the economy will almost always continue to grow. This is…