Right now it feels to most investors like the bottom is about to fall out. All they’ve seen is stocks go down, down, down, day after day after day. And that’s what they expect for the future.
A few weeks from now things are going to look very different. The stock market will have put in a significant bottom and exploded higher. All those investors who sold stocks in the last couple of weeks will start to think about getting back in. The pundits will be on TV saying this was capitulation, the bottom is in, stocks are a bargain, the bear market is over.
I’m telling you. You heard it here first: Get ready for the mother of all bear market rallies.
Also: this post has a theme song: “Get Ready”, The Temptations.
UPDATE (Mon 10/10, 12:40pm PST): 😉
UPDATE (Wed 12/10, 1:30pm PST): Barton Biggs wrote in the FT on November 24: “I do think we are setting up for the mother of all bear market rallies”.