Monday, 30 April 2018

Stock and bond markets may have entered bear markets

Clem Chambers, CEO of investment website ADVFN, thinks that the stock market has entered a bear market.

Chambers wrote that “we are in bear market territory now”, although he did not think that there will be a sharp crash.

Chambers said that the Federal Reserve has been supporting the stock market since the dotcom crash.

“My money is still on a crash, but in a world where markets are caged by regulators regulating, those regulators are not going to let go of their control without a hard fight or a sudden fright,” he wrote.

Meanwhile, the bond market may also have entered a bear market.

“I think we’re in the early stages of a bond bear market,” said Bob Michele, head of global fixed income for JP Morgan’s investment arm, in an interview with Reuters.

Michele said that central bank asset purchases are falling and their assets will start shrinking in the fourth quarter of this year.

“That becomes more problematic for the markets to digest,” said Michele.

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