Global market authority Bert Dohmen has been saying for a number of months that the stock market would be OK until the end of August, and then start a strong decline in September. So far that has been right on target.
This current period reminds us of the period around the year 2000. In our September 4th issue of the award-winning Wellington Letter, we showed the similarities between the current market set up and the year 2000 bear market.
Below is the chart of the S&P 500 (weekly) during the early 2000s. Back then, the market plunged from March to April 2000, similar to what we saw in February-March 2023, i.e., the US banking crisis. The aftermath of both plunges was followed by the start of a strong rally.
That rally from the first plunge bottom in April 2000 lasted until September 1, 2000, making it a 5-month bear market rally.
Then, on September 1, 2000 the typical Phase 2 decline of the bear market started. In technical analysis that is typically the most severe decline…and it was!
During the bear market rally from April to September 2000, enthusiasm for stocks was tremendous. We continued to ring the alarm bells, saying that the bear market was not over. It is not easy to be in the very small minority. It reminds us very much of the current market.
The first chart below is the S&P 500 from 1997 to 2003. Note the arrow at 9-1-2000.
The government and their bank buddies don’t care, they will get bailed out while the rest of us starve
Biden & his Criminal Democrats Caused ALL of the BAD when it Happens !!!! CRASH Coming !!!!!