Many negative fundamentals continue to be in full force.
Last weekend I explained how that week’s market decline carried many negative factors, but needed a second week’s confirmation to be taken seriously. That confirmation has happened. Here is the last two week’s selloff picture…
The last two week’s clear downside pattern not only confirms a weak stock market, it opens the door to the possibility of new bear market lows. After all, the many negative fundamentals continue to be in full force.But, didn’t the 2022 bear market end? No
The so-called bull market was simply a rebound of sorts because last year’s worrisome predictions (particularly of a serious recession) became less dire. Also, the next bull market will have totally different upside drivers than the previous one. That is far from happening.
While the meme stock market fad has finally died, all the other areas continue to be active: investor-unfriendly SPACs, unproven biotech company IPOs, negative earnings story stocks, debt-ridden company IPOs from private equity funds, and overly simplistic stock ideas.
