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“ ‘The collapse in oil and the collapse in yields are both unprecedented and exceed the chaos of 2007-2009.’ ”
That’s CNBC’s Jim Cramer capturing the mood on Wall Street on Monday, with the Dow Jones Industrial Average dropping more than 1,600 points, oil prices CL00, -18.96% plunging and the 10-year Treasury yield TMUBMUSD10Y, 0.516% plumbing historic lows.
In a series of tweets, Cramer warned that signs point to an imminent recession:
Cramer also said that, by the time the market closes, we could be waving goodbye to the bull market investors have enjoyed for more than a decade.
“I think that that’s certainly a realistic thing,” he said. “It’s been a great run.”
A great run, indeed. The bull market kicked off 11 years ago today — happy birthday? — and it emerged as the longest on record by August 2018. But this could certainly be the end of it.
A bear market is widely defined as a drop of 20% from recent highs. The S&P SPX, -5.83% would have to close at 2,708.92 to enter bear territory, according to Dow Jones Market Data. The Dow DJIA, -6.19%, which briefly broke below the bear number, would have to end at 23,641.14. At last check, they were both holding above those levels, but things can change fast in this market.
Here’s more from Cramer:
