Stocks are technically back in a bull market, but Wall Street experts don't trust it. 6 of them explain why we're doomed to fall further - and share what traders should do as turmoil continues.

Advertisement
Stocks are technically back in a bull market, but Wall Street experts don't trust it. 6 of them explain why we're doomed to fall further - and share what traders should do as turmoil continues.
danger sign avalanche snow mountain

Pascal Le Segretain/Getty Images

Advertisement
  • While many investors cheered when stocks rallied in late March, strategists and other experts on Wall Street doubt the gains are going to last.
  • They note that big rallies are common during recessions and other market slumps, and it's risky for investors to assume the worst for stocks is already past.
  • Business Insider reviewed research and commentary by six investing pros and compiled their strategies and advice as well as their warnings.
  • Visit Business Insider's homepage for more stories.

It's going to get worse before it gets better.

That might not be the unanimous view on Wall Street, but it feels close to it. Experts are warning that the historic late March rally, which technically took the Dow Jones industrial average into a new bull market, won't last and isn't the beginning of a real recovery from the even larger drop that preceded it.

They're pointing to a variety of reasons, but one of the most popular explanations is this chart. It compares the February and March sell-off, and the recovery after the government adopted a $2 trillion economic relief package, to market performance after the US government passed the Troubled Asset Relief Program that bailed out the banking and housing sectors in September 2008.

If a picture is worth 1,000 words, all of these words would be bad.

Advertisement

Comparing 2008 and 2020RBC US Equity Strategy, FactSet

RBC's Lori Calvasina says that so far, the market's dive in February and March looks a lot like its late 2008 sell-off.

In spite of TARP and stimulus measures, and other attempts at market rallies, the S&P 500 fell 46% over the next 18 months. Combined with its previous 2007-08 losses, the index fell 57% from its 2007 high point to that March 2009 low.

But there's more to learn from market history than that. Here are the writings of six market experts who think investors shouldn't get too attached to their recent gains - and just as important, what they should do to succeed during the turbulence that's ahead.

Do you have a personal experience with the coronavirus you'd like to share? Or a tip on how your town or community is handling the pandemic? Please email covidtips@businessinsider.com and tell us your story.

Advertisement

And get the latest coronavirus analysis and research from Business Insider Intelligence on how COVID-19 is impacting businesses.

{{}}