Stock Market Erases All Gains of 2019
Bloomberg reports One of the Best Years of the Bull Market Was Just Erased in S&P
The S&P 500 rose almost 29% over the course of 2019, good for the second-best year of the bull market. It took a little under four weeks to fall apart.
A rout that reached 11% on Monday briefly pushed the benchmark to 2,402, below its level of two New Years ago. Even after paring the decline at midday stocks were down more than 20% this year.
Extreme investor anxiety was on display on Monday after the second emergency Federal Reserve cut in two weeks proved too little to comfort investors obsessed with the coronavirus and its effect on the economy. The CBOE Volatility Index, known as the fear gauge, jumped as high as 76.4, just shy of its highest level since the 2008 financial crisis.
Not only was 2019 erased, at least momentarily, the entire rally since Trump took office is at risk.
Mike "Mish" Shedlock