, Columnist
Maybe the Coronavirus Didn’t End the Bull Market
Every rally or bust has large counter moves that may not be a real break from underlying trends.
Let’s not get ahead of ourselves.
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After the sudden collapse in equity markets in mid-March, the assumption across the board was that not only was the long bull market over but that a bear market had started. But wait, no: Now there's a new bull market because some stock indexes briefly rose more than 20% from their March 23 lows.
If this all seems a bit silly, it's because it is: The 20% yardstick for determining the beginning or end of market cycles is simplistic and blindly mechanical. Indeed, 20% doesn't do much to help you figure out where to put investment capital to work.