Stock market racing toward a bear market

The equities selloff is showing no sign of slowing down. We all know what might come next… 

Headwinds ahead 

It’s not the best time to have your fortune tied up in equities. The inflation spiral has given way to a rate hike maelstrom that’s reaping havoc across the global North. Oh, and there’s the small matter of war in Europe, too.  

With the Fed’s latest subtle hint at more interest rises to come, investors are now grabbing their money – or what’s left of it – and running – meaning a bear market seems imminent.  

The tip of the iceberg 

What started as a sharp correction for massive tech firms with little profits has since spread to other markets: “The issue now is there really is nowhere to hide,” wrote Jonathan Krinsky, chief market technician with BTIG. 

It certainly seems the case that there’s very little room for maneuver for growth-minded investors, and recessions across the world seem a given at this stage. So what can investors do to protect their money, besides buying gold? 

Despite the negative press, it hasn’t been all doom and gloom for some of the smaller tech stocks and funds. Synopsis and Datadog staged a late rally at the back end of last week, while larger options such as Nvidia and Amazon also kept their heads above water. So while things certainly seem bleak, this doesn’t mean there isn’t room for some optimism. Some.