3/11/2015 – Another down day with the Dow Jones down 26 points (-0.15%) and the Nasdaq down 10 points (-0.20%).
Over the last couple of years one investment strategy in particular worked like magic. If you were to buy every correction, you would have been greatly rewarded. In record time. It then comes as no surprise that today’s correction is viewed, by most market participants, in the very same fashion.
The question is…..should it be?
I would exercise extreme caution here. Here is why. In addition to the very well know fundamental issues such as bubble valuation levels and upcoming interest rate increases, we are also dealing with with excessively bullish mindset.
This is anecdotal, but I saw the same mindset at 2000 and 2007 tops. Just last night I had dinner with a big money manager who told me in no uncertain terms “We won’t see another 10-20% correction for as long as Obama is in office (I have no idea why). Plus, the FED will backstop every sell-off and that anyone who believes otherwise will lose money.”
Perhaps. At the same time, I would rather rely on actual data points and my mathematical/timing work. Not pie in the sky dreams perpetuated by the FED and 6 year of bull market. That is to say, when a bear market kicks in and does go through a 20% (or more) correction, 99% of the investors out there will be left behind holding the bag of HOPE. Just as before. Don’t be one of those people.
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. March 11th, 2015 InvestWithAlex.com
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