September 26, 2023, 1:45 pm EDT
When bears are roaming, it is time to be alert.
In the stock market, there are many signs to show the potential bear market in the early stage. One of the most early one is the technical analysis where we pointed out already in the 09/21 article.
- Leaders fumble (AMZN, AAPL, MSFT, GOOGL, TSLA)
- Lack of emerging stocks, sectors, industries
- Falling below 200 day-moving-average lines (NYSE, NASDAQ markets)
Long term troubling signal comes from economic sides:
- Yield Curve Inversion (09/21/2022, 07/07/2022)
- Unusual Bond Market Drop (09/25)
- Falling house markets and job markets
If we zoom out further, then it should be straightforward to understand wrong policies from the US government (white house, Fed reserve for inflation) and global events (Russia-Ukraine war, potential China invasion to Taiwan) are adding up together to form a much bigger crisis ahead.
It is hard to predict how bad the situation could become because there could be many turnaround opportunities during the bear markets. But, our attitude should be to prepare for the worst in order to reduce the damage to the minimal level.