Tuesday Was Nothing More Than A Bounce In A Market Downtrend

Aug 14 13:08 2019 Print This Article

Market Recap for Tuesday, August 13, 2019

I received an email the other day after I discussed the rising volatility ($VIX) and likely move lower and it stated "Tom, I thought you were bullish. Why the bearish view now?". Let me address this because maybe some others are asking the same question.

I AM BULLISH. We are in a secular bull market that, in my opinion, is still in the very early stages. A mountain of money will rotate from overbought global treasuries to fuel a massive stock market rally. GDP in the U.S. still remains healthy, jobs are strong and interest rates are near historic lows. It's a PERFECT environment for stocks. But the stock market is facing hurdles in the short- to intermediate-term that rear its ugly head from time to time, causing fear and panic and sudden selloffs that are currently unavoidable. They are part of investing in the here and now. Trying to short the stock market and remaining on the short side is an incredibly dangerous strategy, however. Yesterday, one piece of mildly bullish trade news and the Dow Jones moved up nearly 600 points in 45 minutes. Imagine a trade deal!

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