THE 2008 REPEAT: Why the S&P 500 Just Triggered a Multi-Year Bear Market 🚨
Why It Matters
If the comparison to 2007–08 holds, investors and financial institutions face heightened systemic and portfolio risk from credit strains and commodity shocks, while limited government and Fed firepower could constrain crisis mitigation. That combination raises the stakes for risk management, liquidity planning and asset-allocation decisions.
Summary
Gareth Soloway argues the S&P 500 has entered a multi-year bear market after forming a rounded-top distribution pattern and breaking key trendlines, with mega-cap weakness confirming the rollover. He draws a close parallel to 2007–08, citing a sharp oil spike and mounting private-credit stress—including runs on credit funds and warnings of large bank exposures—as the market’s underbelly. Soloway warns institutional selling has overwhelmed retail dip-buying, and while he expects a near-term relief bounce (targeting about 6550 on the S&P), he sees further downside risk thereafter. He also notes the U.S. fiscal and monetary position today is weaker than 2007–08, limiting policymakers’ room to respond.
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