Heading for a bear market?

Good news and bad news.  Let's start with the bad news - many equity markets globally have been slammed this year - Germany is down 10%, Japan down 15% and China down 22%.  Good news is we don't expect the equity slide to turn into a full blown global bear market (a fall of 20%+). Work by Credit Suisse shows that past bear markets in the US have generally been caused by either large overvaluations of equities or an economic recession.  The conditions for neither of these exist at the moment.  So our thinking is to hold the course and learn to live with the current volatility. We're not seeing conditions for a US bear market.   Here's the explanatory table from Credit Suisse:

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