OpEd: The Market’s Immune System May Be Compromised
February 25, 2020 By Jon Henschen, WealthManagement.com The coronavirus gets all the blame for the market implosion, but about two-thirds of these 19 bear market warning signs compiled by Bank of America were already flashing red. Does that mean the market’s immune system is compromised? The market has been able to shrug off numerous bearish indicators, but can it shrug off the coronavirus? Given that the S&P 500 is down close to 8% since Friday's close, is this the infection that kills the bull market? While prior recessions popped singular market bubbles, we are now experiencing the “everything bubble,” which includes stocks, real estate and bonds. Many theories abound as to how much longer the bull market can hold up: From Brent Johnson’s “Dollar Milkshake Theory”—the notion that keeping the dollar strong over the next few years, combined...