The first half of the year saw the benchmark S&P 500 (SNPINDEX: ^GSPC) produce its worst return since 1970. With the S&P 500 and Nasdaq respectively declining 24% and 34%, respectively, at their peaks, both indexes have firmly entered bear market territory. Given the heightened volatility and uncertainty that accompanies bear markets, it has a lot of investors wondering where the market will bottom.
Global investors are preparing for more market mayhem after a monumental week that whipsawed asset prices around the world, as central banks and governments ramped up their fight against inflation. The Federal Reserve delivered its third straight seventy-five basis point rate hike while Japan intervened to shore up the yen for the first time since 1998. "It's hard to know what will break where, and when," said Mike Kelly, head of multi-asset at PineBridge Investments (US).
The bear market is poised for a new leg down as selling intensifies. Apple, Eli Lilly are stocks showing relative strength.