May 18, 2022 2 min read

Bull/Bear Ratio Falling; Powell Talking Tough

Bull/Bear Ratio Falling; Powell Talking Tough

The Investors Intelligence Bull/Bear Ratio (BBR) dropped further below 1.00 during the May 17 week, to 0.65 from 0.68 the prior week.

During the previous corrections since the 2007-09 bear market, the BBR dropped briefly below 1.00 and then rebounded sharply. Those corrections turned out to be brief panic attacks that quickly abated.

The current selloff isn’t a short-term panic attack like the previous ones. That’s because inflation has turned out to be a more serious problem than the issues that triggered the past panics. It has required the Fed to pivot from its ultra-easy monetary policies since the Great Financial Crisis to a tightening monetary policy.

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