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The Last Bear Market Was Short-Lived. This One Feels Different

Investors no longer think the Fed will come to the rescue, and they’re not buying the dips.
fin_markets Jerome Powell

Photo Illustration 731. Powell: All Drago/Bloomberg

It’s time to navigate through what traders call a “sea of red,” the color used to signal declines in asset prices on their computer screens. Almost everywhere you look right now, it’s crimson.

The S&P 500 has fallen more than 20% from its high on Jan. 3, and the Nasdaq-100 has plunged 30% from its November record. Bitcoin has lost two-thirds of its value since it almost touched $70,000 per token seven months ago. Even a conservative investor, with a sober mix of 60% in stocks and 40% in bonds, is down about 17% this year. And US government bonds, long considered the safest harbor, have lost investors almost 12% in 2022, according to a Bloomberg index of US Treasuries that’s having its worst year ever.