Bear Market Rally

A bear market rally is a phenomenon in which the market moves up over a short period of time but is really in a long-term downtrend. Some consider a bear market rally to be an upward move of 10%–20%, followed by a resumption of the overall downtrend. It is important for investors to ensure that they aren’t invested too heavily during a bear market rally, since the ensuing fall will decrease the value of their portfolio.


Optimism towards key stock indices is increasing each day. The U.S. stock market “seems” to be a safe place, and it’s common to hear stock advisors suggesting we are going higher on key stock indices. Key stock indices like the…

The third-quarter corporate earning season has begun. And as I have been predicting, earnings growth just isn’t there this quarter. If companies in key stock indices are beating their earnings estimates, it’s because they are beating already lowered expected earnings.…

There is calm before the storm looming in the U.S. that is called the “Fiscal Cliff”—a bigger issue than perceived by the majority of the American population. A fiscal policy implemented during President Bush’s period in office, which included cuts…

In spite of weak corporate earnings within the S&P 500 list companies, the market continues to grind its way higher. However, this chart shows the S&P 500 could be forming what is referred to in technical analysis jargon as a…

The U.S. Midwest is in the midst of the most severe drought in 50 years. The brutal conditions are destroying corn, wheat, and soybean crops, sending the prices of many agricultural commodities rocketing higher—another knife cutting into consumer confidence and…

As I have been warning in these pages, corporate revenue growth within the global economic slowdown is going to be very hard to come by for the remainder of 2012. So far, about 25% of all S&P 500 companies have…

When the governor of Utah signed a bill that made gold bullion and silver bullion legal tender in the state last March, he had no idea of the groundswell he was going to start. The Utah Sound Money Act outright…

San Bernardino, with a population of 209,000, has become the third California municipality to declare bankruptcy within the last few weeks. The budget deficit that San Bernardino faced was $46.0 million and its money was gone, leaving the council little…

For June, the U.S. created 80,000 new jobs, well below economists’ forecasts of 100,000. The unemployment rate remained steady at 8.2%. (Source: U.S. Bureau of Labor Statistics, July 6, 2012.) When looking within the U.S. job numbers for June, of…

Buried under a huge budget deficit with pension obligations it had no way of honoring, Stockton, California could not reach a deal with its creditors and so will be forced to declare bankruptcy within days. The mayor of Stockton, Ann…

Some believe the stock market is trading at a low price/earnings (P/E) multiple, meaning stocks are historically cheap. The P/E multiple takes the current market price per share of a company or index and divides it by the corporate earnings…

Since the financial crisis hit in 2008, central banks around the world have enacted unprecedented expansive monetary policy that has been extreme and unusual. (In simple terms, they’ve printed money like never before.) The hope was that by lowering interest…

You've heard the news… Economists (except for this one) were looking for 150,000 jobs to be created in the U.S. in May, which would have reflected moderate economic growth. Instead, only 69,000 jobs were created in the month of May…

Here’s the bottom line on the crisis in Europe: The only way the European debt crisis could be put temporarily aside is if the European Central Bank (the “ECB,” our equivalent of the Federal Reserve) prints money. Since Germany is…

It’s been four years in a row now that some economists have been calling the U.S. housing bottom without success. In any depressed market, there are always pockets of opportunity and some areas that will do well. In the housing…

The U.S. durable goods report is an important gauge of economic growth. It focuses on big-ticket items that are purchased by businesses and consumers, which are meant to last at least three years; a sign of business and consumer confidence.…

I know it sounds crazy, but it’s true. Investors are paying the U.S. Treasury to hold their money in exchange for participation in expected rapid inflation. Treasury Inflation Protected Securities, more commonly known as TIPS, are bonds backed by the…