Charts declare bear market, say correction could last until next June

Bank of America-Merrill Lynch sees stocks struggling through the first half of 2019.

Based on historical data, he noted markets have fallen 20 percent or more without being accompanied by a recession. And, this case may be no different.

“You have periods where you trade in ranges,” he said. “You have periods like the ’80s, like the ’60s and ’70s and the Great Depression area. You also have periods where you are trending up like the 1950 to 1966 time frame – and 1980 to 2000. … We think we’re in another one of those phases.”

As atypical as it may feel, Suttmeier contends there’s nothing extraordinary about the latest string of deep sell-offs.

“Our view is it’s a garden-variety bear market — not like the 50 percent drawdown we saw in 2007 to 2009 or the one in 2000,” Suttmeier said. “You could have cyclical bear markets, economic expansions [and] contractions in cyclical bull markets.”

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President Donald Trump participates in the signing ceremony for the First Step Act and the Juvenile Justice Reform Act in the Oval Office of the White House December 21, 2018 in Washington, DC.NY Fed President John Williams says the Fed could re-evaluate view in 2019