How far could America’s stockmarket fall?
...
A reversion to the average, which is around four percentage points, would entail share prices dropping by 29% at current bond yields.... For much of the 2010s the yield gap hovered around six percentage points; in the ... years following the financial crisis of 2007-09, it was more like eight. A return to those levels would require share-price crashes of 47% and 57%, respectively.
/Nosanitize
The Economist "gift" article.
https://econ.st/49Zahnh
@Coctaanatis Well, I agree that most valuations make it difficult for value investors to find companies to invest in right now, so some correction is expected and you see that every time the Fed says it's not going to reduce rates (which also incidentally has hurt some regional banks).
I don't see a doom crash happening though. But if investors panic at some point, that's when I go shopping for companies that I know aren't going to fail.
@Lulz4l1f3 A stock market crash is a good time for bargain hunting, but that requires liquidity. And it probably wouldn't offset losses if you're already heavily invested.
Or we could just be in for a long decline.