Like it did in 2008 or 2020?
In brief, no. That doesn't mean there won't be a bear market. But crashes occur at the END of bear markets not at the beginning. The reason is that crashes are really the capitulation of the bulls. They have been losing money. Maybe they bought more on the downside and are feeling even more pain. At some point, they simply give up and basically panic sell their long holdings to stop the pain Once the longs capitulate, there is basically nobody left to sell and the market starts a new bull market. Everybody is afraid of crashes, which they should be. But not at this stage of a bear market. This is the stage where there are still lots of people buying dips so there are people for the bears to sell to. That keeps the bear market orderly. A crash is the ultimate in a disorderly market. It happens when the bulls give up and stop buying and not only stop buying but panic sell there positions. It could be a psychological capitulation or it could be margin calls. But, whatever, they give up and sell. That usually marks the end of bear markets or near to the end of a bear market. Currently, we are not seeing any significant capitulation which tells me that there is more go to on the downside. Good bear trading, Courtney Smith P.S. I am putting our famous How To Profit From Bear Markets course on sale for 60% discount. Please read the ad below. | |
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