Bear Market

13 Pages 3127 Words

n-muting Bubblevision to listen to some of the guests over the past week, the popular bullish consensus seems to be that the great gains of the last couple months are the vanguard of a thrilling new bull market in stocks. Investors are being told by Wall Street to buy now or else risk missing the coming recovery and bullish feast.

The bears on the other hand, also not surprisingly, claim this current action is little more than a spectacular bear market rally. Although bears don’t appear on the mainstream financial media much these days except to be poked at with sharp verbal sticks and ridiculed by the bullish hosts, there are still quite a few surviving in the financial wilds. The bears point out that bear market rallies are by definition extreme and spectacular, just like this one, so the bear market can lure more bulls to their doom as it slowly annihilates bullish sentiment.

Both bulls and bears alike are having their patience tested by the current action. Since the great rally is losing steam and has run up so rapidly, the bulls ar...