New Stocks Bear Market?

Thanks to June’s sizable and rather-sharp stock-market selloff, fears are growing that a new bear market is brewing.  For investors and speculators, the implications of these concerns are not trivial.  Optimal trading strategies vary wildly between bull and bear, as bears relentlessly maul down all sectors including popular ones like commodities stocks.  So today’s bull-or-bear question is critically important to address.

A bear market is simply a prolonged period of falling prices.  These dreaded beasts come in two distinct breeds, secular and cyclical.  Secular means long periods of time, on the order of a decade or more in financial-market terms.  The US stock markets have actually been continuously mired in a secular bear for over a decade now.  So any new stock bear can’t be secular, as we’re still languishing in an old one.

Red More: http://www.zealllc.com/2011/newbear.htm