February 3, 2016
Richard’s Wisdom by the Dow Theory Team –
"Richard’s Thoughts on the Bear Market"
We can't control the stock market. The very best we can do is to try to understand what the stock market is trying to tell us. There's only one crystal ball that reflects the future of business and economics. That crystal ball is the stock market. There's only one forecaster for the stock market. That forecaster is the market itself. If you can understand the full meaning of the three sentences above, you will be far ahead of the vast majority of market analysts and writers and reporters, and ahead of most fund managers and professionals.
A number of subscribers have asked me what I’d expect to see at a true bear market bottom, not a temporary secondary bottom but a real end of the bear market bottom. Here’s what I would expect to see.