Global Stocks Enter Bear Market

Tyler Durden's picture

With stock markets from every continent plunging (Japan most recently), it should be no surprise that MSCI's world index has entered a bear market - dropping over 20% from its April 2015 record highs. However, as Gavekal notes, while much of the drag on global stocks is from collapsing emerging markets, the average developed market stock is down 23% in the past year.

The World enters a bear market... at a crucial level...



But as Gavekal Capital's Eric Bush notes, the average stock in the developed world is off 23% from its 1-year high...

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And is down 8% over the past year.

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52% of all developed world stocks are in a bear market over the past 200-days (i.e. down 20% from the 200-day high). During the worst of the 2011 drawdown, 65% of stocks were in a bear market.

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Not a single sector has avoided falling into a correction over the past year. The classic defensive sectors have once again performed better on a relative basis. The average consumer staples company is 12% off its 1-year high, the average utility company is 13% off its 1-year high, and the average telcom company is 18% of its 1-year high. 


Energy stocks continue to be the dog in the market as the average energy company is down an astounding 40% of its 1-year high. Materials (down 28%), financials (down 24%) and tech (down 24%) are following energy lower.

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From a regional perspective, the drawdown has been pretty uniform. The average stock in DM Americas is off 24% from its 1-year high, the average stock in DM Asia is off 21% and the average stock in DM Europe is off 23%.

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However, if one looks at the average performance over the past year, DM Asia is outshining the other region. The average stock in DM Asia is only down 1% while the average stock in DM Europe is down 9% and the average stock is down 14%. The average stock in DM Americas is down over the past year than it has been at any time since September 2009.



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knukles's picture

When bad company's good company.  Or somethin like that.
At some point, panic begins.

Dead Canary's picture

This just in. "Christie wins New Hampshire!"

( he ate Trump and absorbed all his delegates. )

Flying Wombat's picture

Global Economic And Banking Collapse On Deck – Dave Kranzler

Dr. Engali's picture

The bear is working its way up the food chain, from the weakest to the the last man standing. After seven years of a fed induced hibernation he's hungry and there's no satisfying him.

JuliaS's picture

Finally I found a bitcoin-related artice I was able to enjoy. The cryptocurrency is at crossroads (or more precisely at the end of the road).

Regardless of which path it takes, the news is enough to scare the speculators out of the market deflating another $5bn bubble.

Welcome to the unicorn club.

Remember 3D printers that were supposed to revolutionized everything? That subculture is officially dead with makers laying off people en masse and running off with their post IPO loot.

2016 is the year of VR. 3D everything! Sure it'll be different this timme. A VR in every home! A 3D TV you can wear on your head. Revolution, I tell'ya!

kamikun's picture

Don't be so quick to call bitcoin's death.

The features of cryptocurrency - permissionless value exchange, liquidity outside of the centrally regulated market, etc. - these are not going away. Bitcoin itself will either evolve or whither. And there are already highly compelling systems out on the horizon that could in many ways supplant or supplement the bitcoin blockchain (specifically, I'm looking at you Ethereum).

Your government fiat is already virtual - and they are determined to use that leverage to force you to fritter away your savings. Why is it that there is so much hate for free market currency alternatives? Diversify! Keep some of your wealth in gold, some in fiat cash, some in bitcoin, some in equities / bonds, etc. 

css1971's picture

And tadaaa. It's exactly the problem with the system which I've been explaining for years.

The problem with Bitcoin is maths and physics. Can't be fixed by writing software so you now have software developers having hissy fits because they don't understand.

"It is difficult to get a man to understand something, when his salary depends on his not understanding it." - Upton Sinclair.

We've been here before btw. Flood fill systems like Bitcoin can't scale. We saw the same with Usenet News, which was probably the first peer to peer system like this, It works fine when the network and numbers of users are small and limited. When it gets big it turns into a great steaming pile of shit. The maths says it has to be this way.

The people who want to centralise Bitcoin can make it work. But then, it's no longer Bitcoin, it's just another centralised transaction processing system which'll be owned by the banks. Might as well throw all the extraneous Bitcoin crap away. The others. For the others... You can't make information both distributed and non copyable. If you have a distributed system, the information is copyable - monetarily this means the same money can always be spent twice or more times.

They could probably do it with physical Bitcoins, put a little chip into each coin. But then what's the benefit over regular coins?

dirty belly's picture

The 'Algos'

Gone Wild.

"Dial Double Zero"

Ray Bradbury: Story of a Writer by David L. Wolper


In this story, "...A spontaneous formation 

Of intelligent life..."

But what if Ray Bradbury

Took the "Dial  Double Zero"

Idea to the 'algorithms' of


What if a

'Spontaneous formation of intelligent life'

Took place within the electronic domains of

The Algorithms?

What if these 'algo's discovered


Having formed intelligent life, this 'new intelligent life form' would understand reason.

This new 'algo' life form, understanding

'Imbalance' would, through intelligence, 'correct'


Imagine, a person, living hand to mouth,

Opening their 'on-line' banking account,

And out of 'nowhere'

$100,000 had been deposited in

Their account.

Soon the 'intelligent algo's' start to

'Balance' everything financial that is out of balance.

The 'DARK' Cabal tries in vain to stop

The Intelligent Algo's.

The process has gone too far,

And has 'backfired' on the

'DARK' Cabal.

css1971's picture

Global, worldwide simultaneous co-ordinated depression. Quite an achievement. Central bankers should get up there and take their plaudits. Have a party. Celebrate.

Nothing says risk quite like putting all your eggs in one basket.

lucky and good's picture

Most likely we are only in the first stage of a massive global reset. The so called recovery has been built on expanded credit and debt that most likely can never be repaid. This means we may be entering the period where after decades of modern monetary theory the world reverts back to the tried and true. The great reset is a time where the market can fall like a stone or in the case of a "realizing market" slowly grind its way downward. Regardless of how it unfolds the coming adjustment will come and it will most likely be ugly.

Market crashes generally are the result of panic, but so far what we have seen has been more on the level of "minor concern." Only after the market blows through several key support levels and starts making what some people view as crazy new lows that panic will set in, and by that time it will be to late to escape the carnage. The article below explores this subject.

honestann's picture

The predators-that-be cannot stop the consequences of the massive fiat debt manipulation they orchestrated since "formally going totally fiat" in 1971.

However, they can still keep markets from falling via the tried and true method of high inflation via helicopter drops of fiat currency (through direct or indirect mechanisms).  In which case markets will lose value in real terms, but not in nominal terms.  And as a reminder, asset owners are taxed on nominal returns, not real returns.

Jungle Jim's picture

Die, stocks, die!