Why Both Bulls & Bears Will Miss The Upcoming Bear Market

daily chart Sept 24 2014

9/24/2014 – A strong up day with the Dow Jones up 154 points (+0.90%) and the Nasdaq up 46 points (+1.03%).

The stock market continues to perform as anticipated. I had a heated discussion with a Perma Bull last night. That led to an idea for today’s update and the reason why 99% of all bulls and bears will miss the upcoming bear market.

During our discussion the Perma Bull suggested that he will be able to get out of the market as soon as the bear market starts, hedge with put options, blah, blah, blah…..

The reality is very different. The psychological framework behind today’s market will prevent ALL from either avoiding or participating in the upcoming bear market. Today, this mindset is very straight forward.

For Bulls this market will never go down. Every sell off is recovered within a relatively short period of time and everyone is proclaiming that this secular bull market has another 5-10 years to go. Despite the fundamental backdrop, the only way is up. Climbing the wall of worry….right?
For Bears this market has been an absolute disaster. In simple terms, the bears are scared shitless of this market. No wonder investor survey reveals that the % of bearish investors are at an all time low (since they started tracking the metric in 1985)

Interestingly enough, both mindsets lead to the same kind of thinking and to the same eventual outcome when the bear market begins to develop. Leading to massive bullish losses and forgone opportunities for the bears to profit. Here is how it will play out. It always does.

First 5% decline mindset: This is just a simple correction. Bulls don’t sell, bears don’t initiate short positions.
5-10% decline mindset: This is the 10% correction everyone was talking about. Bulls don’t sell, bears don’t initiate short positions.
10-20% decline mindset: Darn it. This is that 20% correction that was overdue. Too late to sell now, its time to buy more. Too late to go short now, the move is almost over.
20-30/40/50%: F$%*. Bulls begin to panic while selling at a loss. Bears begin to short, without realizing that it is too late to short (future losses are probable).

As you can see, today’s mindsets for both bulls and bears will lead to significant losses when the upcoming bear market of 2014-2017 begins to develop. If you would be interested in avoiding this faith and learning when the bear market of 2014-2017 will start (to the day) and its internal composition, please CLICK HERE

(***Please Note: 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. September 24th, 2014 InvestWithAlex.com

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