Now global investors are speculating about when the US economy will officially enter a recession, of which the famous American investor "Wooden Sister" Cathie Wood believes that the United States has completely entered a recession, admitting that he has seriously underestimated the seriousness and sustainability of INFLATION in the United States before, and said that the S&P 500 index has returned to a bear market. So the question is, the myth of wealth creation in the US stock market has been shattered, how much room does the US stock market have to fall?
The U.S. stock market, which was once the crown of the world, finally ushered in a plunge in the eyes of global investors this year, of which the S&P 500 and nasdaq indexes also completely entered the bear market. According to the fund managed by "Sister Wood" Cathie Wood, from the beginning of 2022 to the present, her active funds have fallen by more than 50%, down 66% from the high point 52 weeks ago.
However, although most of the US stock companies have been cut in half, the mainstream view in the United States is that the recession has just begun, and the market will face a more violent impact in the later stage. Therefore, some Wall Street investment banks issued a view in mid-June that the US stock market may be in the first half of the mountain, and there is still more than 20% room for the S&P 500 and Nasdaq to fall in the future.
Under the rhetoric of Wall Street tycoons, top US institutions have sold US stocks and shortED US stocks and corporate bonds. For example, Bridgewater Fund and JPMorgan Chase. Interestingly, Bridgewater not only sold U.S. stocks and short corporate bonds, but also spent 45 billion euros in the second quarter to go short European stocks. It is conceivable that Wall Street is now not only very pessimistic about the US economy, but also bearish on the European market.
According to data released by the Federal Reserve, the Texas Business Activity Index plunged to -18 from -7 in May in June, well below the market's forecast of -3. Then it can be seen that as the top three economic powers in the US economy for many years have become the bears now, what will be the situation of other states?
And even in the previous article, we also mentioned a data that thousands of rich people have donated money to flee in states such as New York, Chicago and Texas. This also confirms the signs of a recession in the United States. At the same time, in the second quarter of the Us GDP forecast released by the Texas Federal Reserve, it showed that the original growth rate was 0.3%, down to 0%. The University of Michigan's consumer confidence index is already at a record low.
All of this makes it clear that the U.S. economy may face a setback at this stage for a long time to come. Of course, the US stock market must also have a long bear market to go.
However, in the big countries far to the east, the stock market has rebounded from the bottom in late April, rebounded by nearly half, and most of the stock prices have doubled, which is China. There is a saying in the market that the harder you work, the better it becomes, so netizens, do you think there will be a bear market in the US stock market, and the A-share will go slowly?