The U.S. stock market met popular criteria for a bear market this week as the latest declines by the S&P 500 took the U.S. large-cap benchmark down by more than 20% from its record close in January. Investors, no doubt, are wondering how far stocks might fall from here, and what to do next. The S&P 500 SPX, -3.25% met the bear-market threshold on Monday and has largely remained under pressure this week aside from a Wednesday bounce following the Federal Reserve’s 75-basis-point rate hike, its largest in nearly 28 years. Fears that drastic rate hikes may trigger a recession in the next year are hanging over markets, analysts say. According to George Ball, chairman of the investment firm Sanders Morris Harris, bear markets bring an average 38% decline in stocks from peak to trough, which suggests that there may be further downside ahead. Through Thursday’s close, the S&P 500 was down 23.6% from its Jan. 3 peak close. “Any upward moves we may see in the near term are merely relief rallies. Chasing rallies in this bear-market environment should be avoided.” Following Wednesday’s decision, Fed Chair Jerome Powell said the door was open for another 75- or 50-basis-point increase in July, but that 75-basis-point moves weren’t likely to become the norm. Analysts are becoming worried that the Fed is going to overshoot. NN: a lot of money has been lost in Bitcoin. I estimate upwards of a trillion dollars. This money fueled a lot of investments in the stock market especially high tech. Liquidation of positions on any upmove in stocks is the hallmark of a distressed market. We have had several surprises along the way. A blow up in crypto coin was not expected. My instincts have told me for a long time to stay away. In fact we had a bit coin mining operation on the table using our excess solar power that i nixed. The numbers looked great at $50,000 bitcoin. Breakeven in 12 months. But a colossal loser at $20,000. Then you had the Euro and Pound getting slammed. And if that was not enough to make you wish you had gone to med school. The Fed is in danger of raising rates to fast. Remember this inflation for the most part is not financial led….. Money supply has been contacting for over a year now. Its driven by major errors the big retailers made in ordering inventories, China supply change distributions and idiot politicians slitting their throats by sanctioning their food and oil exports from Russia. These are problems that will right themselves in time and the inflation created will not resolved themselves by throwing the economy into a depression.