U.S. markets have logged four consecutive weeks of gains, but investors shouldn't get too comfortable. In fact, we've spotted three signs a stock market crash could be coming in 2016...
bear market 2016
- 3 Signs a Stock Market Crash Could Be Coming in 2016
- Bear Market 2016 Will Get Worse for One Major Reason
- A Major New Stock Market Crash Warning Sign Was Just Revealed Today
- The Biggest Reason Bear Market 2016 Isn't Over
- This Is Not the Start of Another Bull Market in 2016
- This Stock Market Crash Chart Shows a Major Warning for 2016
- What Are Negative Interest Rates?
- Our Stock Market Predictions Show More Losses Ahead in 2016
- The Bear Market 2016 Has Already Arrived
- Don't Ignore These Bear Market Warning Signs in 2016
- Bear Market 2016: How to Protect Your Money Now
- Stock Market Crash 2016: How Low Are the Markets Going?
- Will the Stock Market Crash in 2016? – February 2016
- Bear Market 2016: How Much Lower Is the Dow Headed?
- When Bear Market 2016 Will Turn Around
- The Best Bear Market Investments to Hold in 2016
During a four-day rally last week, the Dow Jones Industrial Average climbed 490 points. And that was just the most recent surge in the index's 1,200-point recovery since its dismal start in early January.
While the signs of a rebound were encouraging, Money Morning experts say "bear market 2016" isn't close to being over.
"Despite some moderately positive economic news last week, the global economy remains depressed and the prospects for significantly higher stock prices are low," Money Morning Global Credit Strategist Michael Lewitt said.
Even though the markets have rebounded in the first week of March, we just received a major new stock market crash warning sign today (Monday).
The Bank for International Settlements warned today that there's a "gathering storm" in the global economy. According to the bank, the storm is the result of global governments exhausting their monetary policy options.
Fortunately, Money Morning experts have developed a plan for investors to protect their money during a stock market crash situation. But before we get to that, let's dig deeper into today's stock market crash warning...
U.S. stocks have rebounded smartly after a crushing start to the year, but this is no time for investors to be complacent.
We have the biggest reason why bear market 2016 isn't over.
Investors may be feeling better about markets after U.S. stock indexes closed Tuesday at their highest levels in nearly two months. But despite the recent gains, this is not the start to another bull market.
We've just come across a stock market crash chart that signals a serious warning to investors around the world.
"Warnings are starting to flash all over,"Money MorningCapital Wave Strategist Shah Gilani says. "The predominant sentiment these days is uncertainty. The markets are nervous. Very nervous."
With several global central banks cutting interest rates in 2016, one question we keep hearing is, "What are negative interest rates?"
A negative-interest-rate policy (NIRP) is a monetary policy tool where nominal target interest rates are set with a negative value somewhere below zero. In short, the policy means banks and customers are essentially paying to park their money at financial institutions.
Negative interest rates have become much more popular in 2016, and Money Morning experts say the ramifications are huge for global stock markets.
It's true that global markets rallied last week, and the Dow Jones Industrial Average has climbed 3.8% since Tuesday, Feb 16.
But our stock market predictions show more losses ahead. In fact, Money Morning Global Credit Strategist Michael E. Lewitt says investors should not be fooled by the strong performance of stocks last week.
Financial pundits are finally agreeing with what we've been saying since the start of the year: bear market 2016 is here.
The Dow Jones is down nearly 6% since January, even after the triple-digit rallies we've had recently.
With the S&P 500 up 5.3% over the last week, many investors are hopeful that the markets have finally turned around in 2015.
But even though the markets are up this week, there are some major bear market warning signs that cannot be ignored...
Analysts around the world are finally confirming what we've been saying at Money Morning all year: We are in a bear market in 2016.
The MSCI All-Country World Index, which tracks the performance of large- and mid-cap stocks across 23 developed and 23 emerging countries, declined 1.3% yesterday. That pushed the index's decline since its May peak to 20%.
Global stock markets tanked today (Thursday), prompting new fears of a stock market crash in 2016.
And Money Morning Capital Wave Strategist Shah Gilani just released a new prediction for the Dow Jones following this week's market events.
Many investors fear a stock market crash in 2016 as the broader markets continue to drop. So far in 2016, the Dow Jones, S&P 500, and Nasdaq are down 8.6%, 9.9%, and 15.4%, respectively.
A stock market crash is a sudden decline in stock prices across multiple sectors. It's often triggered by fear and panic, which differs from a profit-taking market sell-off.
The most recent example of a stock market crash was in 2008.
The Dow Jones Industrial Average collapsed from its high of 14,164 on Oct. 9, 2007, to 11,000 in early July 2008 - a 22% drop. This was the result of over a dozen big banks failing from high-risk loaning practices. Major financial markets lost more than 30% of their value in 2008, according to Investopedia.
This bear market won't give investors a break in 2016.
More than 50% of the S&P 500 stocks are down 20% or more from their 52-week highs. And the Dow Jones Industrial Average is down nearly 11% from its May highs.
Investors anxious about how long the bear market 2016 will last can take some comfort in looking at the 2016 earnings forecast.
While we’ve had three consecutive quarters of negative earnings growth – and are about to see a fourth – the forecast for the second half of 2016 is for the start of a rebound.
But investors don’t need to sit on the sidelines.