Bear Markets Move Fast
Elliott Wave International
As Bob Prechter says, bear markets move fast and are
intensely emotional.
Please read this free report that could help you sidestep perhaps the
biggest bear market in living memory.
Anyone who has been watching the market for the past few years
knows that Wall Street wanted the stock market to get back to where it
was.
You know, to the optimism and price
levels in the time before the 2008-2009 financial crisis.
And Wall Street did get its way in the Dow
Industrials more than a year ago. The index reached new all-time highs in 2013.
As for the return to pre-crisis optimism, that
took a bit longer. But return it did, and very recently, in two measureable
ways:
-
Stock ownership just hit "a rare extreme" -- 34.4%
of total financial assets among US households. That's a higher
percentage ownership than in 2007.
-
The percentage of bears among advisory services fell to 13.3%,
the lowest in 27 years. "This means 87.6% of advisors are
bullish on the long term trend."
Of course, these are contrary indicators. Many
other similar measures have reached similar extremes. So when it comes to a
"Return to 2007," the real question is:
How far will the re-enactment go?
Markets are most likely to turn when the
fewest number of participants expect it. The reason truly big
market meltdowns become meltdowns is because so few people are
ready beforehand.
We've seen a lot of down days in the stock market since the
September 19 high. And, after every one of those losses, I read and hear the
same idea from the media: This is "a buying opportunity."
In truth, that notion is also part of the
re-enactment.
I'm obliged to say that it's hardly been two weeks since Bob
Prechter published his Special Interim Report. It posted in the
afternoon on September 19, the same day as the high.
In 20-point type, Bob said
"This Is It."
It's times like these that investors need to prepare for the
coming bear market. What we're seeing is only the beginning. We would rather see
you prepare early instead of late.
Preparing early means sidestepping perhaps the biggest bear
market in living memory. It means safeguarding your spending power as others
struggle to make ends meet.
As Bob Prechter says, bear markets move fast and are
intensely emotional; investors and traders who are prepared have
greater opportunities on the downside than on the upside.
Please read this free report, "This is It."
