In yet another sign of stupidity from traditional financial media, The Daily Ticker is trying to figure out why recent market action is “Not the start of a bear market”. Chief equity strategists from Citigroup delivers the well scripted answer (read below if you are really interested). Traditional financial media and most market pundits would lead you to believe that it is impossible to predict or time the financial markets. BS. We do it here everyday and we do it successfully.
While I am not at liberty to say if a bear market has already started (info available only to our premium subscribers), it is fairly easy to predict financial markets in both price and time once you have a complete mathematical breakdown and internal composition of the stock market. In fact, if you would be interested in learning when the bear market will start (to the day) and it’s internal composition, please Click Here.
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This Is Not The Start Of A Bear Market. Why Not? Google
Daily Ticker: This is not the start of a bear market: Citigroup’s Levkovich
High profile U.S. tech stocks have led a selloff that has seen global markets plagued by a loss of momentum over the last three days. Monday, the Nasdaq composite fell close to 1.2% marking its biggest three-day drop since November 2011 — it’s down 5.9% for the last 30 days. And the Dow and S&P 500 posted their worst three-day losing streaks since Jan. 27, 2014.
So are we seeing what could be a 5% to 10% correction for the market, or could this be the beginning of a bear market?
“To a great degree what we’ve seen is high-growth momentum stocks reversing direction,” Tobias Levkovich, chief equity strategist at Citigroup, tells us in the above video. He thinks people have misinterpreted the selling, saying investors are moving from small to large-cap stocks, from growth to value and toward quality. Levkovich says what we are seeing is “discreet parts of the market” like biotech, social media and cloud computing “start to lose what had been a small little bubble forming.”
He doesn’t think we’re going to see this horrible correction — he thinks this will remain more “discreet,” but says 5% to 10% would be normal, healthy and cleansing — and he’s expecting that in the first half of this year. He says he doesn’t expect a bear market, though.
Citi is still looking for the S&P 500 to end the year at 1975, posting 7% overall growth commensurate with earnings growth.