Quote Originally Posted by blackcap View Post
Why would there be another 20% drop in US markets?
Lots of reasons, starting with the fact that the economy is in recession, but markets are already back at pre-Covid levels. Nasdaq is back at February levels, FFS, and they were considered to be in serious bubble territory even then. Which kinda ignores the real state of the economy, with 30 million plus newly unemployed, a record retail sales drop and a 50% drop in GDP. Oh, and they're trying to re-open before actually recovering from Covid. Then there's the historic reaction to such a huge sell-off, very seldom ending in a V bottom. More usually, there's a dead-cat bounce (bear market or short squeeze rally) of about 20-30% before returning to re-test the initial low. At least. Even given the Fed's unprecedented support, I don't expect it will be any different this time.