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US stocks got close to a bear market. Here’s what that means

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US stocks got close to a bear market. Here’s what that means

By STAN CHOE and ALEX VEIGA

NEW YORK (AP) — The bear came close to Wall Street but then backed off.

The stock market’s slump this year briefly pulled the S&P 500 into what’s known as a bear market Friday, before a late rally put the index in the green. The prevailing sentiment among investors remains negative, however, so the relief may be temporary.

Rising interest rates, high inflation, the war in Ukraine and a slowdown in China’s economy have caused investors to reconsider the prices they’re willing to pay for a wide range of stocks, from high-flying tech companies to traditional automakers. Big swings such as the one seen Friday have been commonplace.

The last bear market happened just two years ago, but this would still be a first for those investors that got their start trading on their phones during the pandemic. For years, thanks in large part to extraordinary actions by the Federal Reserve, stocks often seemed to go in only one direction: up. Now, the familiar rallying cry to “buy the dip” after every market wobble is giving way to fear that the dip is turning into a crater.

Here are some common questions asked about bear markets:

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WHY IS IT CALLED A BEAR MARKET?

A bear market is a term used by Wall Street when an index like the S&P 500, the Dow Jones Industrial Average, or even an individual stock, has fallen 20% or more from a recent high for a sustained period of time.

Why use a bear to represent a market slump? Bears hibernate, so bears represent a market that’s retreating, said Sam Stovall, chief investment strategist at CFRA. In contrast, Wall Street’s nickname for a surging stock market is a bull market, because bulls charge, Stovall said.

The S&P 500 index, Wall Street’s main barometer of health, rose less than 1 point Friday, leaving it 18.7% below its high set on Jan. 3. The Nasdaq is already in a bear market, down 29.3% from its peak of 16,057.44 on Nov. 19. The Dow Jones Industrial Average is about 15% below its most-recent peak.

The most recent bear market for the S&P 500 ran from February 19, 2020 through March 23, 2020. The index fell 34% in that one-month period. It’s the shortest bear market ever.

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WHAT’S BOTHERING INVESTORS?

Market enemy No. 1 is interest rates, which are rising quickly as a result of the high inflation battering the economy. Low rates act like steroids for stocks and other investments, and Wall Street is now going through withdrawal.

The Federal Reserve has made an aggressive pivot away from propping up financial markets and the economy with record-low rates and is focused on fighting inflation. The central bank has already raised its key short-term interest rate from its record low near zero, which had encouraged investors to move their money into riskier assets like stocks or cryptocurrencies to get better returns.

Earlier this month, the Fed signaled additional rate increases of double the usual amount are likely in upcoming months. Consumer prices are at the highest level in four decades, and rose 8.3% in April compared with a year ago.

The moves by design will slow the economy by making it more expensive to borrow. The risk is the Fed could cause a recession if it raises rates too high or too quickly.

Russia’s war in Ukraine has also put upward pressure on inflation by pushing up commodities prices. And worries about China’s economy, the world’s second largest, have added to the gloom.

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SO, WE JUST NEED TO AVOID A RECESSION?

Even if the Fed can pull off the delicate task of tamping down inflation without triggering a downturn, higher interest rates still put downward pressure on stocks.

If customers are paying more to borrow money, they can’t buy as much stuff, so less revenue flows to a company’s bottom line. Stocks tend to track profits over time. Higher rates also make investors less willing to pay elevated prices for stocks, which are riskier than bonds, when bonds are suddenly paying more in interest thanks to the Fed.

Critics said the overall stock market came into the year looking pricey versus history. Big technology stocks and other winners of the pandemic were seen as the most expensive, and those stocks have been the most punished as rates have risen. But the pain is spreading widely, with shares of Target and other retailers slumping hard this week after reporting weaker-than-expected profits.

Stocks have declined almost 35% on average when a bear market coincides with a recession, compared with a nearly 24% drop when the economy avoids a recession, according to Ryan Detrick, chief market strategist at LPL Financial.

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SO I SHOULD SELL EVERYTHING NOW, RIGHT?

If you need the money now or want to lock in the losses, yes. Otherwise, many advisers suggest riding through the ups and downs while remembering the swings are the price of admission for the stronger returns that stocks have provided over the long term.

While dumping stocks would stop the bleeding, it would also prevent any potential gains. Many of the best days for Wall Street have occurred either during a bear market or just after the end of one. That includes two separate days in the middle of the 2007-2009 bear market where the S&P 500 surged roughly 11%, as well as leaps of better than 9% during and shortly after the roughly monthlong 2020 bear market.

Advisers suggest putting money into stocks only if it won’t be needed for several years. The S&P 500 has come back from every one of its prior bear markets to eventually rise to another all-time high.

The down decade for the stock market following the 2000 bursting of the dot-com bubble was a notoriously brutal stretch, but stocks have often been able to regain their highs within a few years.

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HOW LONG DO BEAR MARKETS LAST AND HOW DEEP DO THEY GO?

On average, bear markets have taken 13 months to go from peak to trough and 27 months to get back to breakeven since World War II. The S&P 500 index has fallen an average of 33% during bear markets in that time. The biggest decline since 1945 occurred in the 2007-2009 bear market when the S&P 500 fell 57%.

History shows that the faster an index enters into a bear market, the shallower they tend to be. Historically, stocks have taken 251 days (8.3 months) to fall into a bear market. When the S&P 500 has fallen 20% at a faster clip, the index has averaged a loss of 28%.

The longest bear market lasted 61 months and ended in March 1942 and cut the index by 60%.

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HOW DO WE KNOW WHEN A BEAR MARKET HAS ENDED?

Generally, investors look for a 20% gain from a low point as well as sustained gains over at least a six-month period. It took less than three weeks for stocks to rise 20% from their low in March 2020.

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Veiga reported from Los Angeles. __ Follow more of AP’s business coverage at

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10 Underrated Bollywood Movies Of All Time You Need To Watch

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Underrated Bollywood Movie

Bollywood movies get plenty of attention, but some don’t receive as much praise as they deserve. These underrated Bollywood movies are under the radar because they aren’t precisely award winners, or they just didn’t get the widespread attention that their success and entertainment value warranted. Here are 8 underrated Bollywood movies you should watch right now!

1. The Lunch Box

Credit: IMDb

When it comes to movies, everyone has a list of personal favorites. However, there are a lot of great films that never get appreciated by audiences for one reason or another. The Lunch Box is one of those underrated gems from our perspective. A “flaw” in delivering the lunch box leads to a peculiar bond between Saajan (Irrfan Khan) and Ila (Nimrat Kaur).

2. Vicky Donor

Underrated Bollywood Movie
Credit: IMDb

If you’re looking for an underrated Bollywood movie, it doesn’t get much better than Vicky Donor. This rags-to-riches comedy is a thought-provoking look at sperm donation and how it can affect a person’s life in ways they never expected. No matter what age you are, I promise that Vicky Donor will make you laugh your ass off.

3. Udaan

Underrated Bollywood Movie List
Credit: IMDb

This 2010 film, directed by Vikramaditya Motwane and starring Rajat Barmecha and Ronit Roy, is about a young boy who runs away from home to follow his dreams. Filmed in beautiful locations in Rajasthan, it has an art-house feel that’s quite similar to Italian neorealism. Udaan was chosen as India’s official entry for Best Foreign Language Film at the 83rd Academy Awards. One of the best-underrated Bollywood movies out there for sure.

4. Swades

Underrated Bollywood Movie
Credit: IMDb

If you were to tell me before I saw Swades that it would be a top underrated Bollywood movie, I’d look at you like you had three heads. But here we are.

5. Tumbbad

Underrated Bollywood Movie List
Credit: IMDb

A terrifying example of why folklore is never meant to be shown on screen, Tumbbad is a movie that introduces us to an ordinary family living in one of India’s poorest regions. An epic mythological tale mixed with horrific human emotions, Tumbbad takes our breath away as we watch its main character grow older while his quest for power worsens. With no shortage of fear-inducing moments or spectacular and colorful set pieces, Tumbbad is a perfectly underrated Bollywood movie that you must absolutely watch.

6. Aligarh

Underrated Bollywood Movie
Credit: IMDb

Deeply emotional and intensely powerful, Aligarh tells a love story in which no one is a victim, no one is a martyr and all decisions are rational ones. Aligarh takes you on an intense journey of human emotions and what it means to be different in a world that refuses to accept difference. The top underrated Bollywood movies list would be incomplete without mentioning Aligarh.

7. Rocket Singh – Salesman of the Year

Underrated Bollywood Movie
Credit: IMDb

This satirical comedy highlights why employees aren’t putting in their best efforts. Set against a backdrop of disinterested management, Rocket Singh is a fictitious film that draws parallels to Indian bureaucracy and posits how to change things for the better. While fictional, it’s not far from reality. The movie is still funny, even if your office isn’t exactly like it. If you watch just one underrated Bollywood movie on our list, make it Rocket Singh – Salesman of The Year.

8. Har Kisse Ke Hisse Kaamyaab

Underrated Bollywood Movie
Credit: IMDb

Kaamyaab is an underrated Bollywood movie that you need to watch. It’s a great movie dauntlessly directed by Hardik Mehta. Underrated Bollywood movie like Kaamyaab deserves appreciation from the audience. Brilliantly acted by Sanjay Mishra. But what sets it apart from other movies is its brilliant script and complex themes.

9. Newton

Underrated Bollywood Movie
Credit: IMDb

Newton is an underrated Bollywood movie you need to watch if you’re a fan of thought-provoking and intelligent movies. Movies which you can’t afford to miss watching while in India. The movie stars a few of our favorite Bollywood actors like Rajkummar Rao, Pankaj Tripathi, Sanjay Mishra, Raghubir Yadav, Anjali Patil, etc. If you ask us why we suggest Newton for underrated Bollywood movies then it’s because despite being a fairly recent one (Released on January 9th, 2017), Newton is one of those films that has failed to leave an impact among viewers.

10. Masaan

Underrated Bollywood Movie - Masaan
Credit: IMDb

Director Neeraj Ghaywan’s 2015 romantic drama tells a gut-wrenching story of a young couple struggling with the social stigma. This award-winning film was inspired by real-life incidents that took place in North India and highlight issues of caste and class. Featuring some amazing cinematography and an incredible performance by newcomer Vicky Kaushal, Masaan is often considered to be one of the most underrated Bollywood movies of all time. It even made it to TIME magazine’s list of top 10 must-watch Bollywood films. If you haven’t seen it yet, do check it out!

Hindi cinema is one of the biggest in the world, and India produces movies at an astonishing rate. It’s hard to keep up with all of them, especially if you aren’t living in the country itself or familiar with the culture. With this list of underrated Bollywood movies of all time, we offered you the chance to find some great titles that will entertain you and let you learn more about Hindi cinema at the same time.

The post 10 Underrated Bollywood Movies Of All Time You Need To Watch appeared first on MEWS.

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Vintage Kyle Hendricks leads the Chicago Cubs to a shutout of the St. Louis Cardinals: ‘Everything was working’

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Vintage Kyle Hendricks leads the Chicago Cubs to a shutout of the St. Louis Cardinals: ‘Everything was working’

There’s no question Kyle Hendricks has suffered through some difficult starts in 2022, his second straight subpar season with the Chicago Cubs.

Hendricks came into Friday’s game against the St. Louis Cardinals having allowed six runs or more in four of his 13 starts, leading to a bloated earned-run average of 5.43. It’s not the Hendricks the Cubs have come to expect, though it’s also not the same kind of contending team he has enjoyed playing for during the bulk of his career.

But Cubs fans got a glimpse of vintage Hendricks on Friday night at Busch Stadium, and it was every bit as good as they remembered.

“That was as good as I’ve seen him this year,” manager David Ross said. “Everything was working.”

Hendricks tossed 7 ⅓ shutout innings in a 3-0 victory before 46,524, the largest crowd of the season at Busch.

The Cubs won for only the fifth time in 19 games, silencing the first-place Cardinals in the opener of their first series of the season in St. Louis.

“It was really Yan (Gomes) tonight,” Hendricks said of the game plan. “It was what he was able to do. I recognized it from the start. I trusted him the whole game. There was a couple shakes where I was committed to something and a couple shakes where I shouldn’t have.”

Hendricks allowed five hits while striking out six and walking one in a 91-pitch outing, improving to 3-6. Chris Martin and David Robertson finished if off, with Robertson collecting his ninth save in 12 opportunities.

Hendricks allowed only two base runners in the first five innings. Juan Yepez singled with two outs in the second but was thrown out at second to end the inning. Paul Goldschmidt walked with two outs in the fifth before Hendricks retired Brendan Donovan on a fly to center.

After Dylan Carlson singled to open the eighth and Harrison Bader doubled, Hendricks struck out pinch hitter Lars Nootbar before Martin replaced him. The Cubs reliever induced a comebacker to the mound and a soft liner to short to strand the runners.

“When you come in a game, whether you’re up five or down five, you try to get your mind right for the whole situation,” Martin said. “But definitely whenever you go out and pick up a teammate, you’re more amped up after that. It makes baseball fun in those situations. It’s where the bullpen wants to be and a big confidence boost.”

The Cubs scored their runs on Nico Hoerner’s two-run homer in the second off rookie Andre Pallante and Ian Happ’s RBI double in the fifth. Happ came into the night with a .367 average in his previous 22 games, quietly emerging as the co-leader of the offense along with Willson Contreras.

Ross before the game said Happ has proved he’s an “All-Star caliber” player.

“Ian has been our All-Star, he and Willson,” Ross said. “Those guys have really stood out above the rest for us. It’s nice to see the veteran guys play that consistently.”

But Hendricks was the man in the spotlight Friday.

“Vintage Kyle,” Ross said. “He locks it in when the stage is big.”

Whether it looked like the Hendricks of old, he said he doesn’t think of a performance like Friday as a reminder of something in the past.

“Somewhat, but it feels so long ago,” he said. “I’m really trying to focus on where I’m at and just seeing the game for what it is, taking it and knowing where to go and making my pitches. Yan really helped me today feel the game better. I just haven’t had that great feel for what they’re trying to do against me. He was huge getting me in that mindset.”

Hendricks is such a low-key individual he appears the same every day no matter how he’s performing. After the struggles he has gone through in the last two seasons, has he ever gotten so upset that he breaks something?

“No, not breaking stuff, man,” he said with a laugh. “I just get frustrated and just got to get to work. There’s nothing I can do to change it. Now it’s just get to work and make the next one better. Obviously it’s not where I want to be. There’s not anger or anything like that. Just got to make better pitches — that’s where my focus is.”

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Chicago White Sox manage only 1 hit in a heated 4-1 loss to the Baltimore Orioles — their 3rd straight defeat

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Chicago White Sox manage only 1 hit in a heated 4-1 loss to the Baltimore Orioles — their 3rd straight defeat

Austin Voth and four relievers combined on a one-hitter, Jorge Mateo had a heated exchange with Chicago White Sox starter Michael Kopech after getting nailed by a pitch and the Baltimore Orioles won 4-1 on Friday night at Guaranteed Rate Field.

Voth, normally a reliever, went three innings in his second start. He gave up an RBI double to Jake Burger in the second for the White Sox’s only hit.

Joey Krehbiel (3-3) worked 2 ⅓ perfect innings before Bryan Baker and Cionel Pérez each got four outs. Jorge López pitched the ninth for his 13th save in 15 chances, helping the Orioles win their third straight and fourth in five games.

After outscoring the Washington Nationals and the White Sox by a combined 11-0 over the previous two games, the Orioles cruised in this one too.

The only real drama occurred in the second inning after Kopech (2-4) retired the first two batters. He nailed Mateo near the left shoulder and upper back with a similar pitch to the one that hit Sox second baseman Josh Harrison on Thursday.

Mateo had some words for Kopech. The benches and bullpens emptied, but no punches were thrown. Orioles manager Brandon Hyde argued with crew chief Marvin Hudson, and both teams were issued warnings.

Mateo stole second and came around on a single by Richie Martin to make it 2-0.

Cedric Mullins led off the game with a bunt single and scored on a wild pitch.

Rookie Adley Rutschman doubled in the fourth and scored on a balk. Austin Hays added an RBI double in the eighth to extend the lead to 4-1.

The White Sox dropped their third in a row, and Kopech lost his second straight start. The right-hander went six-plus innings, allowing three runs and three hits.

  • White Sox third baseman Yoán Moncada (right hamstring strain) might be ready to return from the 10-day injured list when he is eligible Tuesday, manager Tony La Russa said. … Center fielder Luis Robert was back in the lineup after being held out Thursday because of an unspecified injury.

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