the exact definition of a bear market is not clearly defined, but earnings are very strong, and many stocks are hitting new highs. valuations are relatively low and they are dropping, there is a bull market on the horizon barring a recession.
2006-07-31 22:18:18
·
answer #1
·
answered by Anonymous
·
1⤊
0⤋
I was a bear market since 2000. The rally you saw from late 2004 till May 2006 was what is known as a bear market rally. You can have trends within trends, but you have to look at the larger cycle.
In May 2006, the market topped at 11,670, 75 points shy of it's all time high. In a true secular bull market, the market would be making new highs, not attempting to break new highs after nearly 5 years.
The market runs on a 17-18 year secular cycle. The last secular bull ran from 1982 to 2000, and the secular bear before that from 1965-1982. So, if the bull ended in 2000 and the market runs on a 17-18 year cycle, therefore we have been in a secular bear since 2000.
What you must realize is that this bear is only beginning to really take hold. The first phase took the Dow down to 7200. We have entered phase II of this bear.
With it being 2006, we still have another 11-12 years to run on this secular bear market and you watch and see, when this bear finishes running it's course, the Dow is going to plumb the depths not seen in decades. When this bear finishes, look for the Dow to be trading in the 3,000 range to as low as the 1,000 range. It's going be be really ugly.
2006-08-01 09:40:52
·
answer #2
·
answered by 4XTrader 5
·
0⤊
0⤋
not yet, but it is getting there. It will happen in early spring of 2007. the bear market happens when stock market drop 20% or more. If the fed keep raise interested rate and the oil price still keeping high.it happen sooner. you should be prepare
2006-08-01 03:10:47
·
answer #3
·
answered by Hoa N 6
·
0⤊
0⤋
yup, but it's a small bear now, traditionally Sept and Oct are the times when the big bears come roaming around, not sure if they will be hibernating this year and let the bull out for a little walk.
2006-08-01 03:22:32
·
answer #4
·
answered by firefly 5
·
0⤊
0⤋