Since U.S. and developed international stock markets peaked this year in February, they fell 27% through the closing low this past Thursday. (as of 3/17/2020)   A bear market is declared once they reach the 20% threshold. Historically, it takes an average of eight months to enter a bear market. This time it took less than one month—the fastest ever. (see image attached)

We all know what is driving the market selloff: the efforts to mitigate the spread of COVID-19 pulling the global economy into a recession, the depth of which is hard to gauge at the present time. But are all market participants selling on the grim news?

Surprisingly, that doesn’t appear to be the case. Examining which market participants propelled the fastest bear market over the past month may give us some insight to the current situation and may tell us what to expect in the difficult months ahead.

Click below to read on!  You may be surprised at the answer!

What fueled the fastest bear market ever. JP Morgan March 2020

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* Source: Pew Research Center
† Source: “Quantitative Analysis of Investor Behavior, 2014” Dalbar Inc. Most recent data available. An index is un-managed and one cannot invest directly into an index.

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