{"id":16660,"date":"2019-08-14T16:22:01","date_gmt":"2019-08-14T15:22:01","guid":{"rendered":"https:\/\/traders-paradise.com\/?p=16660"},"modified":"2019-09-06T13:29:37","modified_gmt":"2019-09-06T12:29:37","slug":"morgan-stanley-claims-bear-market","status":"publish","type":"post","link":"https:\/\/traders-paradise.com\/magazine\/2019\/08\/morgan-stanley-claims-bear-market\/","title":{"rendered":"Morgan Stanley Claims We Are In A Bear Market"},"content":{"rendered":"<p style=\"text-align: right;\"><em>2 min read<\/em><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-16665 size-full\" src=\"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/08\/bear-4-1.jpg\" alt=\"Morgan Stanley Claims We Are In A Bear Market\" width=\"800\" height=\"533\" srcset=\"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/08\/bear-4-1.jpg 800w, https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/08\/bear-4-1-300x200.jpg 300w, https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/08\/bear-4-1-768x512.jpg 768w, https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/08\/bear-4-1-370x247.jpg 370w, https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/08\/bear-4-1-760x506.jpg 760w, https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/08\/bear-4-1-424x282.jpg 424w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The <a href=\"https:\/\/www.morganstanley.com\/\">analysts<\/a> from Morgan Stanley claim that we are in a bear market.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Any proof? Don&#8217;t tell me you missed it!\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The US S&amp;P 500 Index was closed on Friday down by 3% compared with the highest level in late July, 26, registered in intraday trading.\u00a0<\/span><span style=\"font-weight: 400;\">Bear market means the stock prices drop 20% or more but the corrections include price falls about 10%.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, you may ask how we already enter the bear market if prices dropped by 3%, it so far away from 10%.<br \/>\n<\/span><span style=\"font-weight: 400;\">Morgan Stanley anyway claims that &#8220;we are still mired in a cyclical bear market&#8221; pointing three spots in this estimation.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_74 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/traders-paradise.com\/magazine\/2019\/08\/morgan-stanley-claims-bear-market\/#The_proofs_of_the_bear_market\" >The proofs of the bear market\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/traders-paradise.com\/magazine\/2019\/08\/morgan-stanley-claims-bear-market\/#The_statistics\" >The statistics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/traders-paradise.com\/magazine\/2019\/08\/morgan-stanley-claims-bear-market\/#The_previous_bear_markets\" >The previous bear markets<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/traders-paradise.com\/magazine\/2019\/08\/morgan-stanley-claims-bear-market\/#The_bottom_line\" >The bottom line<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"The_proofs_of_the_bear_market\"><\/span><b>The proofs of the bear market\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">First, compared to the beginning of 2018. the S&amp;P 500 is &#8220;roughly flat&#8221;, but Friday&#8217;s closing was less than 1% over the intraday high noticed on January 26, 2018.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The other evidence is the fact that 80% overall equity markets dropped by 10% already.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And third, the other US market indices are down by approximately 10%.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-16668 size-full\" src=\"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/08\/sp500-1.png\" alt=\"SP500 historical chart\" width=\"800\" height=\"504\" srcset=\"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/08\/sp500-1.png 800w, https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/08\/sp500-1-300x189.png 300w, https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/08\/sp500-1-768x484.png 768w, https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/08\/sp500-1-370x233.png 370w, https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/08\/sp500-1-760x479.png 760w, https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/08\/sp500-1-424x267.png 424w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Morgan Stanly further noticed that during the past year and a half, a\u00a0 majority of global stock market indices dropped notably from their highs. Actually,\u00a0 all stock markets were more volatile than during the previous two years when we had the bull market profits.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8220;At this point, we would view our call in January 2018 for a multi-year consolidation and cyclical bear market as well established and documented,&#8221; said Morgan Stanly in conclusion.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Morgan Stanly report notes that both the small-cap S&amp;P 600 and the mid-cap S&amp;P 400 didn&#8217;t reach new highs in 2019. Also, both dropped by more than 10% from prior highs noticed set in September. 2018.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"The_statistics\"><\/span><b>The statistics<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The statistics show, among eleven S&amp;P 500 sectors, five have reached new highs this year with consumer staples, utilities, and REITs as leading. The two others are consumer discretionary and the IT sector.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Morgan Stanley states &#8220;&#8230;the fact that long-term Treasury bonds have defeated the best equity market in the world over the past 18 months, especially since September [2018].&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, according to Morgan Stanley, we are in the middle of the bear market.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"The_previous_bear_markets\"><\/span><b>The previous bear markets<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">But there is no difference from the first four months of this year. We had a bear <a href=\"https:\/\/traders-paradise.com\/magazine\/2019\/05\/stock-trading-beginners\/\">market<\/a> rally. Yes, it came like a storm but a very long one. It was Christmas when the 25% rally started and ended on May 1 when the all-time highs were recorded. But all benefits from that short bull market period was gone with the wind. <\/span><span style=\"font-weight: 400;\">The bulls were so close, but still incapable to make a change.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Morgan Stanley is right. Since October 2018 we are in a bear market. <\/span><span style=\"font-weight: 400;\">At the time of the mentioned rally, all had some hope based on historical performances. <\/span><span style=\"font-weight: 400;\">The fact is that some of the biggest rallies have happened throughout bear markets. But not now.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"The_bottom_line\"><\/span><b>The bottom line<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">What you have to pay attention to is the overall trend. It will show you the <a href=\"https:\/\/traders-paradise.com\/magazine\/2019\/08\/gordon-growth-model-mathematics-of-trading\/\">right spot<\/a>. The best way to do that is to use the long-term charts to set your trading correctly. <\/span><span style=\"font-weight: 400;\">Anyway, there is no good or positive prediction. Be ready to see the large bear rallies, there will be a tremendous loss. Having this information in your minds, you will know what to do and how to stay objective.\u00a0 <\/span><span style=\"font-weight: 400;\">Over one century, we had\u00a0 32 bear markets and 123 market corrections.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The bear market lasts shorter than bull markets. So, this one will pass.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>2 min read The analysts from Morgan Stanley claim that we are in a bear market.\u00a0 Any proof? Don&#8217;t tell me you missed it!\u00a0 The US S&amp;P 500 Index was closed on Friday down by 3% compared with the highest level in late July, 26, registered in intraday trading.\u00a0Bear market means the stock prices drop [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":16667,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[1005],"tags":[1153,895,1154],"class_list":["post-16660","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-today","tag-bear-markets","tag-morgan-stanley","tag-sp500-index"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Morgan Stanley Claims We Are In A Bear Market - Traders-Paradise<\/title>\n<meta name=\"description\" content=\"Morgan Stanley claims we are in a bear market. 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