An Ear to the Ground

Bear markets make people a lot of money: they just don’t know it at the time. ─Shelby Davis

I got really excited on November 10 after @fledgingtrader pointed me to the following blog post written by Curtis Faith Be Careful – Market in Danger Zone.

Faith predicts a bear market that might retest the 2008 bear market low. Most big market predictions like this one usually turn out to be wrong. However, Curtis has been right before and there is something to say about keeping an ear to the ground and verifying if his prediction is unfolding.

Here is a passage about the timing of bear market from our e-book In Praise of Speculation!:

When stock prices do not rally beyond the prices at which they were before the break occurred, it is a sign that the turning point has been reached and that the bear market has started, although the majority of people do not realize this until a long time afterwards.

I recently wrote the post titled Why Our Investment Blog Is Boring. This post explains why we love bear markets so much.

What do you think? Are we on the verge of a big bear market? If so we have the cash, and are ready for it!

Written by Michael Bigger. Follow me on Twitter and StockTwits.