January 24, 2022, 11:49 am EST
Initial Breakdown for the Coming Bears
The initial breakdown for the coming bears starts today as Dow Jones is down near -1000 points. Bloodshed covers all US major indexes (DJIA -2.7%, S&P -3.4%, Nasdaq -4.1%) as well as global markets as shown.
Please note that this is the beginning of the bear markets which average about 1.5 to 2 years in length according to the historical patterns. There will be rebound and zig-zag behavior but any rebound simply offers chances for exiting and preparing for the next wave of sell-off.
The coming rate hikes from the Fed reserve is one major reason for the end of bulls. But, there are many other issues (valuation, inflation, debt, etc) that are piling up to trigger the bears altogether.
It is about the payback time for the massive money printing, borrowing, and spending patterns since the Obama era till today.
Reducing portfolio exposure to the markets should be appropriate except for some defensive type positions in consumer staples, REIT, or utility.