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Stocks Mauled On Global Recession Fears
Markets across the globe plunged last week which reiterates our cautious stance. As a quick refresher, we first turned cautious last summer – BEFORE the big crash in Aug 2015 and have been very selective since. Thankfully, we entered the year with a very strong cautious stance and FindLeadingStocks.com’s Model Portfolio actually locked in profits and is now in cash while the market has plunged. The fact that sellers continue to relentlessly sell nearly everything they can get their hands on clearly shows you that we are in the early stages of a new bear market for stocks and a global recession is imminent. Several important areas of the market are already in a bear market (defined by a decline of 20% or more from a recent high) which means it is just a matter of time until the major indices play catch up to the downside. These are some of the important areas that are already in bear market territory: Commodities, The Small Cap Russell 2000 ($IWM), Transports ($IYT), Biotechs ($IBB), Retail ($XRT), Junk Bonds ($JNK), Materials ($XLB), In the short term, the markets remain deeply oversold and way overdue to bounce. The fact that they can’t bounce speaks volumes to how weak the market is right now.
Monday-Wednesday’s Action: Sellers Shows Up With A Vengeance
Market Outlook: A Big Top
From where we sit, this aging bull market is over or on its last breath. The last two major bull markets ended shortly after their 5th anniversary; 1994-2000 & 2002-Oct 2007. As always, keep your losses small and never argue with the tape. If you want exact entry and exit points in leading stocks, or access more of Adam’s commentary/thoughts on the market – Join FindLeadingStocks.com.