The three stages of a bear market

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Investors seem to have a major case of FOMO (Fear of Missing Out) and have caused a significant bounce in stock prices off the March lows, expecting a quick economic recovery. But this article from Richard Bernstein Advisors indicates that we are only in Stage 1 of what is likely to be a slow, difficult recovery and corresponding bear market. The moral of the story: don’t be in a hurry to jump back into stocks as you may get badly burned as the Bear market enters Stage 2. On the other hand, don’t panic and sell because things will, some day, recover.

You can read the article here:

Fear of Missing Out

One thought on “The three stages of a bear market

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  1. Good article especially regarding US household savings. The timing on when to get back in the market, still depends on knowing when the bottom is. Although I do believe it will take a longer time to recover as the article suggests.

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