End of Decade-Long Rally? Some See Coronavirus Bear Market
- RBC, Cantor, Citi talking about S&P 500 drops around 20%
- Other strategists watching the Fed, CTAs for bullish signs
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Not long ago, the idea of a 10% drop in the markets seemed remote -- much less anything more. But in a world struggling to deal with the fast-spreading coronavirus, talk of a 20% decline is starting to emerge.
The MSCI all-country global index has dropped more than 7% over a six-day run, and the VIX was above 30 as of 8 a.m. New York time Thursday as S&P 500 futures tumbled. The 10-year U.S. Treasury yield dropped below 1.30%, remaining in record-low territory.