Find yourself believing all those people pointing to the 30% stock rally as evidence that we’re in a Great New Bull Market? Don’t. We might be in a new bull market, but the market’s move isn’t evidence of that.
Just take a look at the chart below, by Doug Short, which overlays our current market (blue line) on three other nasty bear markets: the Great Crash (grey), Japan since 1989 (red), and the NASDAQ since 2000 (green). See those huge rallies in the Nikkei and NASDAQ at this point in the process? People buying then thought the bear market was over, too.
Check out the interactive version of Doug’s chart here >. And take a closer look at bear market bottoms of the last half-century in here >
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