Monday, March 30, 2015

Bear markets happen more than people think: Since 1940 we have encountered 12 bear markets.


bear-markets-happen

It should be clear that bull runs do not last forever.  In fact, there seems to be a natural ebb and flow to the stock market.  We’ve had a very solid 6 year run and the fact that wages are still not keeping up with inflation, we know that something has to give.  Either stock market gains trickle down (unlikely) or a correction is bound to occur.  The market right now is fully hooked on the Fed’s easy money policy.  Any hint that the Fed may raise rates is met by sudden minor corrections.  At some point, the market is going to fully wake up and a bear market is likely to emerge.
DYI 

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