Are we heading for a prolonged bear market?

Key points

- The pullback in shares that we have seen between October and December 2019 could still have further to go but a deep bear market is unlikely as US, global and New Zealand recessions are unlikely.

- The US Federal Reserve has flagged a pause in raising interest rates, the likelihood of a US/China trade deal sometime in the next six months and the plunge in oil prices ( down almost 60% from the high this year) all add to confidence that a bear market is unlikely

Please have a read of Dr Shane Oliver's, AMP Capital's  Head of Investment Strategy and Chief Economist, article "Corrections, gummy bears, and grizzly bears in shares" dated 23 November 2019.
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