Corrections Vs. Bear Markets: Why 20% Declines Are Obsolete

The article says the market would need to fall 50% to 60% from current levels before reaching a valuation floor that historically marked the start of a new secular bull market. Despite that warning, the key message is that the long-term trend is still up, implying a constructive but highly selective outlook on equities.

Analysis

The article says the market would need to fall 50% to 60% from current levels before reaching a valuation floor that historically marked the start of a new secular bull market. Despite that warning, the key message is that the long-term trend is still up, implying a constructive but highly selective outlook on equities.