Global stocks officially entered a bear market this week as the benchmarkMSCI World Index fell more than 20 percent from its most recent high in May. Investors say the U.S. is next.
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Darrell Gulin | Stone | Getty Images |
The selloff—which pushed markets from China to Portugal into bear territory—came as fears of a Greek default escalated and economic data around the globe hinted at a worldwide recession.
“You can make an easy argument that theDow Jones Industrial Average [.DJIA 10771.48 
37.65 (+0.35%) 
] will play catch up by 10 percent to other developed nations,” said Dan Nathan, an options and equities trader who runs Riskreversal.com. “Sixteen of the Dow 30 get more than 25 percent of their revenues from Europe. Something has to give because if 2008 taught us anything, it is that developed economies do not de-couple.”
The Dow hit its bull market high on April 29, closing at 12,810.54. The benchmark Friday is about 17 percent off from that high after its worst week in almost two years. Read more
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