The bear market in U.S. stocks could be a prelude to even tougher times to come: a market swoon has often come hand-in-hand with recession.
Worries that a hawkish Federal Reserve will hurt U.S. growth as it attempts to tame inflation have helped drive the benchmark S&P 500 to a more than 20% decline from its all-time high on Jan. 3, a drop that many analysts define as a bear market.
If history is a guide, the market's action may indicate a recession is in the wings. Nine of 12 bear markets that have occurred since 1948 have been accompanied by recessions, according to investment research firm CFRA. That recession could begin as early as August, history indicates, and there could be more downside in markets to come.