Market Analysis: Has the Bear Market Returned?

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Market Analysis: Has the Bear Market Returned?

The equity markets are not acting favorably to the debt ceiling being raised.  As a baseball fanatic, I see this as Strike 1 against the bull market that started in March 2009.  The 200-day moving average has been penetrated.  This also happened in 2001 and in 2007.  The next three months are very important.  We should see a rally attempt by the end of August to early September.  Maybe the FED comes to the rescue like last August and announces another “Quantitative Easing”.  If the rally is not strong, that is Strike 2.  More later if Strike 3 happens.

Buy and hold strategies do not work in these markets.  Mutual funds are not a good solution.  Individual stocks are the best way to manage risk, and some are looking favorable with this drop; have a discipline!!  Gold continues to “shine”.  Too much debt is not good; learn lessons from the past.  Is it time we finally face this as a country?  The next few months are very important to keep the bull alive.  The bear may be coming out of hibernation!  We need to have a sustainable rally and soon!

 

Grady Gaynor
Grady Gaynor
Grady Gaynor is the President & CEO of Indie Asset Partners, and has over 25 years in the investment industry. His approach to portfolio management is guided by a set of criteria developed over his tenure to help his clients manage both bull and bear markets. Make sure to subscribe to Indie Asset's enewsletter to keep up to date on Grady’s latest posts.

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