"We Are Only At The Beginning": Why SocGen Expects A 50% Drop

And just to make sure SocGen clients are even more depressed, Lapthorne reminds us that while the investing public is fixated on prices being down 20% or more, "during a proper bear market it is common to see one third of stocks lose 50% or more."

Finally, the SocGen strategist shows the chart below which reveals the interesting observation that while the US equity market has done well on a headline basis, "the number of stocks down 50% or more in the S&P 500 is on a par with MSCI Europe at 9% and when we go lower down the market cap scale into the S&P 1500, 18% are down 50% or more from their three year highs."

In other words, if this is indeed a bear market - and Dennis Gartman swore this morning that it is - expect overall stock prices to get worse before they get much worse.

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