The romance U.S. fund investors once had with the stock market was put to rest in 2018 when buy the dip turned into sell the rip.
For evidence, look no further than exchange-traded funds (ETFs), which hold baskets of stocks across the market and have been a primary buyer throughout this bull market.
In 2017, investors often added more cash to the funds when the performance sank. Stocks glided higher.
— Lance Roberts (@LanceRoberts) December 20, 2018
BEAR MARKET UPDATE:$RTY Russell 2000, $SOX Semis, Homebuilders, Oil, Financials, Materials, $NYFANG, $VALUA Value Line, $MID SP Mid Caps, #NASDAQ composite (intraday), Small Caps, $DJT Dow Jones Trans
— OCCUPY WISDOM (@OccupyWisdom) December 20, 2018
In bad finance news today:
– Citi said to have a $180 million loss after lending to an Asian hedge fund.
– Natixis posting a $296 million loss from an Asia structured product hedge.
– Tricadia closing its Credit Strategies Fund.t.co/7QMUDkWyMt
— Tracy Alloway (@tracyalloway) December 19, 2018
Dow falls to 14-month low, Nasdaq enters bear market, six of 11 S&P sectors are now more than 20% off of their most recent 52-week highs
The Dow Jones Industrial Average fell 464.06 points to 22,859.6, bringing its two-day declines to more than 800 points and its 5-day losses to more than 1,700 points. The S&P 500 fell 1.5 percent to finish at 2,467.41 as technology stocks underperformed. The Nasdaq Composite fell 1.6 percent and closed at 6,528.41, briefly dipping into bear market territory amid big losses in Amazon and Apple. The Nasdaq is 19.7 percent below its recent high. Companies in the S&P 500 have lost a total of $2.39 trillion in market cap this month. The Cboe Volatility Index — one of the market’s best gauges of marketplace fear — rose above 30.
And just like that 12 month recession odds soar to 57% pic.twitter.com/gnzT4hhbdk
— zerohedge (@zerohedge) December 20, 2018
— Mike Larson (@RealMikeLarson) December 20, 2018