January 18, 2022, 12:35 pm EST
Bears are roaring today with major indexes down 1.6% to 2.1% as of now.
The common definition of the bear market is a drop of -20% from the top. It does not apply to any index at this moment. But, there are plentiful stocks that already got into the bear markets like ZM or Innovation ETF ARKK.
Nasdaq breaking its 200 day-moving-average lines is a major milestone to give us the sense of coming bear markets. Dow Jones and S&P are more likely to follow the same path as Nasdaq.
It should be the time to check and adjust portfolio settings to ensure it can go through the bear market process. Our estimation is that the drop could be far more than -20% from the drop.
The rising rates, falling housing market, poor job markets, inflation, over-printing currency, COVID-19, and a series of problems are going to be magnified.
Please be prepared.