Is the stock market set up for another late-year nose dive?
By Chris Matthews
The market is having its best year-to-date run in more than 20 years
Source: Market Watch
https://www.marketwatch.com/story/is-th ... yptr=yahoo
Morgan Stanley says that we are in the midst of a cyclical bear market.
Most major global stock indices are down significantly from their highs.
Most U.S. stocks also are down from their own highs.
Deteriorating economic fundamentals are sending profits down.
Looking at U.S. stocks, the report observes that both the small cap S&P 600 and the mid cap S&P 400 have not reached new highs in 2019, and that both are down by more than 10% from their previous highs set in Sept. 2018.
Additionally, only 5 of the 11 S&P 500 sectors have set new highs in 2019, and 3 of those are defensives: utilities, consumer staples, and REITs.
The other two are information technology and consumer discretionary, the latter's performance skewed by the inclusion of Amazon.com Inc. (AMZN), "more a technological disrupter than a good read on the consumer."
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