Here’s How Long It Takes For Stocks To Recover From Bear Markets
ForbesAPR 2022
Growth is collapsing while inflation is rising and the Fed has lost control of the underlying risks in the US economy. The US is headed towards "stagflation" - when inflation remains high and growth remains stubbornly low - and likely recession. The worst part is: markets haven't even "priced-in" that slowing growth yet, so stocks have much further to fall.
Bear markets and bull markets are cyclical, and recessions historically only last for 12 to 16 months. Equities - including new digital assets in the crypto space - have already seen a steep correction and there are opportunities out there for investors who can withstand temporary volatility.
There are only two ways to stop raging inflation: either the Fed moves even more aggressively to raise interest rates or the stock market collapses and destroys consumer demand. If the Fed doesn't do its job, the markets will do it for them.