On Jan 9, 2018, I predicted the beginning this quarter of a bear market for the financial sector. This has clearly begun. But what does it mean for everyone else?
One thing is that so much of the Dow and S&P 500 Indices are made up of financials that the coming downturn in financials will inevitably mean a downturn for the Dow and S&P.
So many folks have their retirement portfolios pegged to the indices that this means the damage won’t be contained to just those holding financial stocks. We need new leaders in these indices if we want to mitigate the damage of the coming financial sector bear market.