The bear market club has won over another long-time bull. According to his InvesTech newsletter, Jim Stack, president of Stack Financial management, who has been a firm stock market bull since 2009, warns investors that we are currently in a bear market that likely has significant downside remaining.

Stack notes that there is no macroeconomic evidence that the U.S. is on the brink of recession, but that fact alone does not mean that stocks are safe from further declines.

“Bear markets historically are a lot more damaging than what investors think,” Stack explained. “Bear markets typically are not just a 20% decline. Bear markets typically take back half or more of the previous bull market gain.”

In fact, in the last 85 years, only one bear market failed…

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