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

Reuters

• 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. …

Sponsored: 


If you enjoyed reading this story so
far, why don’t you join Business Insider
PRIME? Business Insider provides visitors from MSN with a
special offer.  



Simply
click here to claim your deal and get access to all exclusive
Business Insider PRIME benefits.