U.S. stocks are plummeting, why isn’t the Fed bailing out yet?


As it stands, the Fed has no intention of bailing out the market and the S&P 500 is likely to enter a bear market. Historically, once the S&P 500 enters a bear market, it falls further, with an average duration of about one year and an average drop of about 37% from peak to trough. However, it is possible for the Fed to shift to a dovish stance in the future after it reaches the so-called neutral rate, or if there is a recession in the United States.


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