1/12/2014 – Another down day with the Dow Jones down 93 points (-0.53%) and the Nasdaq down 39 points (-0.84%).
Over a year ago I have decided to come out of hibernation in order to warn as many people as I can about the upcoming bear market leg of 2014/15-2017. After seeing the devastating impact the 2007-2009 bear leg had on 99% of investors out there, I continue to believe it is a prudent thing to do.
What I find interesting is that most of today’s bulls have already forgot about the lessons of 2000-2002 and 2007-2009. Never mind the fact that most bulls believe that we are in the early stages of a secular bull market that has another decade to go. Nothing could be further from the truth as a we are still in a bear market that started in January of 2000. The final leg down is still ahead of us. Consider the following.
“The 2007-2009 collapse wiped out the entire total return of the S&P 500 in excess of Treasury bill returns, all the way back to June 1995. If the S&P 500 was to experience nothing but a run-of-the-mill 34% bear market decline over the coming three years, it will have underperformed Treasury bills for what would at that point be an 18-year period since 1999.”
Scary!!! NO? Here is something even scarier. I continue to maintain that today’s market is sitting at an all time high “overvaluation/speculation” levels. Considering my cyclical/mathematical forecast and the fact that the market is extremely overvalued, a typical 20-40% correction here has the possibility to wipe out Treasury adjusted gains to as far back as 1995-94. Impossible? I wouldn’t bet on it.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014/15-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2014/15-2017 will start (to the day) and its internal composition, please CLICK HERE.
(***Please Note: A bear market might have started already, I am simply not disclosing this information. Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. January 12th, 2015 InvestWithAlex.com
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Bullish Downfall: 2008 Correction Wiped Out S&P Gains Back To 1995 Levels Google