Any talk about a continuous bear market is about as popular as hemorrhoids. In fact, suggesting the presence of a bear market seems almost as socially unacceptable as talking about hemorrhoids.
But just because it's hidden behind a veil of silence doesn't mean it doesn't exist. In fact, the less Wall Street talks about a bear market, the more likely there are to be falling prices. Just think of April 2011 (shortly before the summer meltdown) or April 2010 (shortly before the 'Flash Crash').
Unfortunately, sentiment is no longer fail proof (we'll discuss why in a moment). The absence of any fear in December 2010 for example had no immediate consequences.
Fortunately, there are other measures and indicators to gauge whether this is a new bull market or a giant bear market rally. Here are some:
We know that price is the only thing that counts, but because price is often deceptive it tricks investors to move in precisely the wrong direction at the worst of time. The more you know, the more likely you are to call a 'price bluff.'... read more.
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