The David Lin Report · Thursday, July 30, 2026
Milton Berg states that historically, no major bear market has occurred without a prior Federal Reserve hike. He notes that as the Fed has not yet hiked rates, he does not consider a major market peak to be highly likely at this time, viewing current downturns as corrective action. However, he cautions that future rate hikes could slow the economy and potentially lead to a bear market, especially if the stock market remains overvalued.
“But one thing we do know, no major bear market has ever occurred without a Fed hike. So currently, the Fed has not hiked. So I don't think it's highly likely that you're going to have a major market peak.”
“And, um, on the other hand, if they raise rates once or twice this year, that might slow the economy. And a slowing economy itself can cause a bear market. You don't need a recession to cause a bear market.”