How Often Does a Correction Turn into a Bear Market? Historically, a 10% correction rarely leads to a 20% bear market without economic downturns, earnings declines, or rate hikes. With no very serious adverse indicators currently, a bear market seems unlikely in the near term. Image: Carson Investment Research
ISABELNET Cartoon of the Day As U.S. stocks tumble, bears are writing eulogies for the market. Bulls, on the other hand, are buying the dip like there’s no tomorrow, which is ironically what bears foresee! Happy Friday, Everyone! 😎
ISABELNET Cartoon of the Day February’s CPI inflation drops to 2.8%, beating the 2.9% forecast. On CPI days, bulls are like kids in a candy store, while bears sit in the corner, sulking like they forgot their party hats! Happy Great Day, Everyone! 😎
Inflation – U.S. 10-Year Breakeven Rate The declining U.S. 10-year breakeven inflation rate indicates that market participants expect inflation to moderate, aligning with the Fed’s 2% long-term target. Image: The Daily Shot
The Worst Day of the Year for the S&P 500 When It Gains >20% for the Year Monday saw the S&P 500 drop 2.7%, its worst day this year. Even in years with strong returns over 20%, single-day losses average 3.5% since 1950. Sharp daily declines are often part of significant annual gains. Image: Carson…
Annual U.S. Payroll Employment Growth in the Month Before Each Post-War Recession The recent slowdown in U.S. job creation is concerning, as it nears levels typically seen before economic downturns. Image: Paulsen Perspectives
ISABELNET Cartoon of the Day Wall Street bears believe every bull market is just a bear market in disguise. When the crash comes, they can’t resist saying, “We knew it all along!” Happy “Hump” Day, Everyone! 🐫🐪😎
S&P 500 Market Capitalization vs. U.S. GDP The wealth creation in the U.S. stock market has significantly outpaced the broader economy, leading to increased sensitivity of consumer spending to equity moves. Image: Bloomberg
ISABELNET Cartoon of the Day With the S&P 500 down year-to-date, it’s clear bulls need a little encouragement—let’s bring back their mojo and “Make Bulls Great Again!” Have a Great Day, Everyone! 😎
Aggregated U.S. Equity Futures Positions Last week, leveraged funds and asset managers continued to hold significant net long positions in U.S. equity futures. Image: Deutsche Bank Asset Allocation
Estimated Effect of Russia-Ukraine Ceasefire on Real Eurozone GDP A limited Russia-Ukraine ceasefire could raise Eurozone GDP by 0.2%, with a full peace agreement potentially boosting it by 0.5%, according to Goldman Sachs estimates. Image: Goldman Sachs Global Investment Research