Investment Strategy Network, an investment tool designed to assist in the decision-making process for investors
Market Outlook – Start of the BEAR
WE were asked this question over the weekend. Any time the market declines fear rises in investors’ minds. No one wants to have large equity portfolios if the market is heading to a serious bear market. In the attached report we went through some of our main indicators and factors that explain equity markets. None of the factors are calling for a bear market. That does not mean that we cannot have a correction type of shorter term decline. Rather the economic environment does not call for a bear market. This is similar to the reports that we regularly produce although the text is more casual than normal. On the cover we show clips of past forecasts by advisors expecting the start of the bear market in 2017 and again this January. The January bear call much have been particularly painful as the US market advanced very rapidly immediately after this forecast. Flip through the factor charts and see that the big bear is not yet upon us.