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Next recession: One-of-a-kind stock bull market is dead, how to protect



trader upset mad angryReuters

  • Bank of America Merrill Lynch argues the equity bull
    market as we know it is over and urges investors to start
    looking ahead at how to combat the coming collapse.
  • It offers what it calls a “perverse” trade suggestion
    to help combat the economic recession that’s likely to
    accompany any stock-market crash.

At this point, most observers know the ongoing equity bull market is the longest on record.

But there’s another attribute that makes the 9-1/2-year bull run
unique historically: its deflationary nature.

If you’re unfamiliar with the concept of deflation, it refers to
a general decline in prices for goods and services. As it relates
to the market, Bank of America Merrill Lynch points out that
as stocks have soared to record highs, brokerage commissions have
slipped to $30 billion from $80 billion since 2000.

“It’s been the most deflationary bull market of all time,”
Michael Hartnett, BAML’s chief
investment strategist, wrote in a recent client note. …


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