BMI: It is still too early to assert that we are in a Bear Market

On August 5th, Jinshi Data reported that despite recent financial market fluctuations, analysts at BMI, a research institute under Fitch Group, believe it is premature to assert that macro or market conditions have significantly deteriorated. BMI stated, ‘The surge in financial market fluctuations is the perfect storm of macro and market impact under the condition that risk assets have already become overbought and over-stretched.’ When the adjustment begins, the stock market has already rebounded significantly, making dumping more likely. BMI pointed out that a 5%-10% adjustment is quite common in bull markets, with fluctuations intensifying between July and October. Factors that may indicate a stock market collapse into a bear market and drag down the global economy include: the stock market falling below critical support levels, geopolitical tensions driving oil pumping, and continued weak US data exacerbating concerns about the Fed’s overly delayed policies.