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A 'baby bear' market scared the Fed into pausing and history shows that can lead to big comebacks

davfordavfor
in The Bullpen
Over more than three decades and four Fed chiefs, there have been a half-dozen sharp market downturns that forced central bankers to pause tightening programs or even to ease policy.

In the wake of these 'baby bears,' S&P 500 gained more than 20 percent on each occasion one year out, as long as it didn't lead to a recession.

The current rally is on the stronger and longer side of those earlier recoveries, and has ignored upside resistance levels so far in rising 15 percent in less than six weeks.

...for investors still shaken by the December descent that has not even fully been undone by the recent 15-percent S&P 500 rally, history can provide some comfort and food for thought — but offers no guarantees.
https://finance.yahoo.com/news/apos-baby-bear-apos-market-125902257.html
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