Good Intentions Can Cause Bad Bear Markets

Ken Fisher discusses common causes of bear markets, focusing on how government actions taken with good intentions can contribute. He cites the late-2000s financial crisis and the FASB mark-to-market accounting rule as an example, and says deteriorating sentiment can trigger a smaller bear market without a recession, pointing to 2022 recession fears.

1. Ken Fisher says governments often have good intentions, but some past actions contributed to bear markets.
2. He points to the late-2000s financial crisis, when the FASB mark-to-market accounting rule inadvertently caused a credit crunch.
3. He says deteriorating sentiment can trigger a smaller bear market even without a recession.
4. In 2022, he says investors' recession fears helped drive stocks lower, but the economy avoided a recession as people and businesses had already begun preparing for a downturn.