These Three Major Stock Bear Markets are Still Roaring

These Three Major Stock Bear Markets are Still Roaring by David Haggith for The Great Recession

The 2018-2019 stock bear market is still roaring among several major indices. It has broken all the market’s FAANGs and still shows no signs of backing off.

The New York Stock Exchange Composite bear market

graph of NYSE stock bear market

One of the broadest indices for the US stock market, the NYSE, entered a bear market in January of 2018 (falling to the point where it could be classified as a bear market (down 20% or more) in December of 2018). It has not recovered from its approximately 22% fall after two tries that now represent a downward trend line for the index’s subsequent major peaks. (By “entered” I’m talking, not about the date on which an index was first down 20% from its previous highest point, but the date on which it began the trip down that eventually wound up passing the 20% mark.)

Russel 2000 stock bear market

graph of Russel 2000 stock bear market

Another one of the broadest major indices of the US Stock market, the Russel 2000, entered a bear market on August 31, 2018, falling about 28% by December, and has never even come close to recovering from its fall, even at most recent peak.

Thus, by some of its broadest measures, the US stock market remains a bear market.

Dow Jones Industrial Average (DJIA) bear market

graph of Dow (DJIA) bear market

The oldest and most august of US stock market indices, the Dow Jones Industrial Average (DJIA), began its decent into a bear market a month after the broader Russel 2000 on October 3rd and also has not recovered to its former summit. It was setting a multi-month string of new highs and had just set two new daily highs in a row when it toppled.

The Dow Jones Transportation Average entered a bear market two weeks before the DJIA on September 14, 2018, from which it also has never recovered. (Transportation stocks are seen as leading indicators, which they proved to be in this case. What does it say that these trend leaders are leading the latest plunge at a steeper rate than their sister, the DJIA?)

The bear’s FAANGs all broke off

Here is an interesting graph that shows the individual bear markets that each of the FAANG stocks entered in 2018. The breaking of the FAANGs started with with Netflix and Google (Alphabet) in the first half of summer:

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David Haggith

Knave Dave — vigilante against the false profits of The Great Recession Too many criminal CEOs still fill their porky bellies with the biggest taxpayer bailouts in the history of the world. These bailouts protect their reputations, saving them from the fall they should have taken. They continue to receive bonuses for having done an unparalleled job of destroying their companies! Many of their companies wouldn’t be making any profit at all if not for the interest they’re making off of nearly free government bailouts. Just this week Hewlett-Packard fired its CEO, but is still paying him a bonus of millions of dollars in exchange for a year of corporate wandering in the wilderness. Netflix’s CEO cost his company hundreds of thousands of subscribers and had to reverse his decision. Bank of America’s CEO launched a debit-card fee plan that was immediately stupid in the eyes of many, but greed an arrogance led him to think he could pass it by his customers, and he lost customers in droves and had to reverse his decision, as did the many major banks that followed him. Since these corporate leaders do things most of us can immediately see as being dumb, why are they rewarded with salaries a thousand times greater than many of us make?