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Doubts Arise in Mainstream Media: This Is a Bear Market

Written by Gary North on January 15, 2015

This appears today on MarketWatch.

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Another trading day, another bout of volatile stock market action. Yet most investors nowadays aren’t too concerned about the market. This is what happens at market tops.

Skeptics are ridiculed as “naysayers,” “permabears” or “doom-and-gloomers.” As the bull market goes higher, many investors think that maybe it really is different this time. Maybe central banks have the power to keep markets levitated indefinitely.

The European Central Bank is widely expected to follow the U.S. Federal Reserve’s lead this month with a new program of bond purchases meant to stimulate the eurozone’s limp economy. Brian Blackstone joins MoneyBeat. Photo: Getty.

Meanwhile, the bubble gets bigger and bigger, until complacent investors accept the bubble as the “new norm.” Nowadays, uber-bulls believe this market is unstoppable, while some experts have made predictions of Dow 20,000 in 2015.

Conditions are ripe for a bear market. One veteran trader is especially concerned: Mark D. Cook, whom I interviewed for our new eBook, “Prepare Now and Survive the Coming Bear Market Cook predicted three previous crashes and not only survived, but even made money.

Says Cook: This recent market rally “is as phony as a three-dollar bill. Never have I seen a market more ripe to implode. A true bubble is not a short-term phenomenon. Historically, it encompasses years. Fear gradually subsides until even the fleeting thought of possible correction is dismissed as a low probability event. The last skeptics lose all confidence in their belief a correction will occur.”

This time is not different, Cook adds. Bubbles always burst.

Another trading day, another bout of volatile stock market action. Yet most investors nowadays aren’t too concerned about the market. This is what happens at market tops.

Skeptics are ridiculed as “naysayers,” “permabears” or “doom-and-gloomers.” As the bull market goes higher, many investors think that maybe it really is different this time. Maybe central banks have the power to keep markets levitated indefinitely.

Meanwhile, the bubble gets bigger and bigger, until complacent investors accept the bubble as the “new norm.” Nowadays, uber-bulls believe this market is unstoppable, while some experts have made predictions of Dow 20,000 in 2015.

Conditions are ripe for a bear market. One veteran trader is especially concerned: Mark D. Cook, whom I interviewed for our new eBook, “Prepare Now and Survive the Coming Bear Market Cook predicted three previous crashes and not only survived, but even made money.

Says Cook: This recent market rally “is as phony as a three-dollar bill. Never have I seen a market more ripe to implode. A true bubble is not a short-term phenomenon. Historically, it encompasses years. Fear gradually subsides until even the fleeting thought of possible correction is dismissed as a low probability event. The last skeptics lose all confidence in their belief a correction will occur.”

This time is not different, Cook adds. Bubbles always burst.

(For the rest of the article, click the link.)

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