The U.S. stock market is showing signs of restlessness. Price volatility has started to come back to life over the past two years following a long liquidity-drunk post-crisis stretch where they hardly suffered a scratch. With stocks currently running at historically high valuations in the midst of what is already by some measures the second longest bull market in history, many investors are finding themselves increasingly bracing for the day when they finally wake up to find markets tumbling into in the midst of the next major downturn. Some even question whether such a day could come on Friday if the “Brexit” vote turns out differently than expected. Given the inevitability that we will someday have another bear market coupled with the possibility that it could be getting underway soon (if we’re not actually already 14 months into it), what exactly is it likely to look like once the bough finally breaks on the U.S. stock market? And how much time, if any, will investors have to respond?
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