We Are Officially In A Bear Market… What Happens Now?

TL;DR

The S&P 500 and NASDAQ have officially entered bear market and crashed territory, while uncertainties continue to loom over the market due to growth scares, inflation, and upcoming elections.

Transcript

we are officially in a bear market and investors are wondering what happens next as we look at the tail of the past week the s p 500 officially entered into a bear market down 20 from peak to trough the nasdaq officially entered crashed territory down 30 from its peaks yes at the end of the session they paired some of those losses and parked their ... Read More

Key Insights

• 😨 The market is experiencing high levels of uncertainty and fear, driven by a range of factors such as growth scares, inflation, and upcoming elections.
• 😮 Consumer growth has been impacted by rising input costs, inflation, and supply chain bottlenecks, leading to margin and profitability issues for companies.
• 🤨 Manufacturing activity indicators suggest a contraction in economic activity, raising concerns about the overall health of the economy.
• ☠️ Inflation rates have been high in countries like the UK and Canada, affecting consumer purchasing power and economic stability.
• 😋 The Australian election could have implications for policies related to climate change and decarbonization, which could impact the AV battery materials supply chain.
• 🏊 The mmi grant provided to Pilbara and Calix supports the development of a lithium midstream project in Australia, aligning with the focus on onshoring critical minerals.

Questions & Answers

Q: Why did the S&P 500 and NASDAQ enter bear market and crashed territory?

The decline in the S&P 500 and NASDAQ can be attributed to a range of macroeconomic uncertainties, including growth scares, inflation concerns, and supply chain disruptions.

Q: How have rising input costs and inflation affected consumer growth?

Rising input costs, inflation, and supply chain bottlenecks have put pressure on companies to pass on the costs to consumers. This has led to margin and profitability issues for companies like Target and Walmart.

Q: What do the manufacturing activity indicators suggest about the broader economic activity?

The contraction in the New York state and Philadelphia manufacturing indexes raises concerns about broader economic activity. These indicators serve as leading indicators for the economy and reflect the impact of supply chain disruptions.

Q: What are the implications of high inflation rates in the UK and Canada?

High inflation rates in the UK and Canada, driven by energy price increases, raise concerns about the purchasing power of consumers and the overall economic stability in these countries.

Q: How does the Australian election impact the AV battery materials supply chain?

The outcome of the Australian election could have implications for policies related to climate change and decarbonization, which could impact the AV battery materials supply chain, including lithium, graphite, nickel, and cobalt.

Summary & Key Takeaways

• The S&P 500 and NASDAQ have declined 20% and 30% respectively, entering bear market and crashed territory.

• Concerns about rising input costs, inflation, and supply chain bottlenecks have impacted consumer growth, leading to margin and profitability issues for companies like Target and Walmart.

• Manufacturing activity indicators, such as the New York state and Philadelphia manufacturing indexes, have shown contraction in recent months, raising concerns about broader economic activity.

• Inflation has been high in countries like the UK and Canada, while Australia's recent figures showed low wage growth and negative real wages. The Australian election could have implications for the AV battery materials supply chain.

• The outcome of the election in Australia will potentially impact policies related to climate change and decarbonization.