10/21/2015 – A down day with the Dow Jones down 48 points (-0.28%) and the Nasdaq down 40 points (-0.84%).
I believe so. Just a few quick bearish data points for today.
First, Economy ‘caught in a vicious cycle’: Larry Summers
“We’re caught in a vicious cycle. Incomes are too low, therefore investments are too low. … We need to get out of that cycle,” he said. He called for smart tax reform and rules to discourage the kind of activism that strips cash out of companies.
He is right about both low interest rates and this vicious cycle. The problem is, we have pushed today’s “Economic Miracle” just about as far as it can go. That is, before it promptly blows sky high. The demand won’t go up because Zero Interest Rates and QE have created overcapacity in just about every sector.
And give today valuation levels, there is nothing to invest in. To speculate in, sure, but not to invest in. Unfortunately, this “vicious cycle” cannot be resolved until and unless we go though another recession, financial crisis or worse.
Second, the market’s hottest sector is about to face trouble: Technician
“The discretionary sector might be in store for the same a corrective move within the broader long-term uptrend,” predicted Stockton.
My question is, how many more sectors would have to correct before a bear market is evident? It is important to remind everyone that, despite this massive rally off of August 24th lows, most indices and sectors are selling well below their May/Summer highs.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2015-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2015-2017 will start (to the day) and its internal composition, please CLICK HERE.
(***Please Note: A bear market might have started already, I am simply not disclosing this information. Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. October 21st, 2015 InvestWithAlex.com
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