(DCWatchdog.com) – BREAKING NOW: It is now official. The S&P 500 — the stock market index that tracks the performance of 500 large companies listed on stock exchanges and the index that professional investors watch most closely — has fallen into bear market territory having slid 20% from its most recent high.
As the business network CNBC notes:
“U.S. stocks fell to new lows for the year on Friday on rising fears of a recession with the relentless market sell-off now pushing the S&P 500 20% below its all-time high in January.
“The S&P 500 traded about 1.4% lower on Friday, putting it 20.1% below its intraday record reached in January. To some that puts the benchmark in bear market territory…”
According to George Ball, the chairman of investment firm Sanders Morris Harris, “The average bear market lasts a year (338 days, more precisely). This downturn has run for only one-third of that, so it probably has more downside room to run, albeit punctuated by interim rallies.”
Further, the former chief economist of the SEC, Larry Harris, said, “Are we going to have a recession? It’s pretty likely. It’s very hard to stop inflation without a recession. Rising interest rates choke off spending by increasing the cost of financing.”
Bottom line: As the stock markets slide and recession looms, Americans are being hit with higher prices for almost everything as inflation continues at record-high levels. Once consumers reign in spending, a significant recession is all but inevitable.
This is a breaking news report from the DC Watchdog.
JUST IN – S&P 500 enters bear market, -20% from recent high.
— Disclose.tv (@disclosetv) May 20, 2022