🚨Bear Market 2022: Over or Just On Pause? a Bear-Market Rally?🚨

The S&P 500 Just Had Its Best Month Since 2020.

Beware the bear-market rally, also known as a bear trap, the sucker’s rally, and a dead cat bounce. A phenomenon characterized by a swift and powerful rise in stocks, is typically triggered by short sellers covering bets and value investors snapping up the most beaten-down shares, assuming the worst is over only to see the market fall again. Bear-market rallies tend to be narrowly based, short-lived, and end as swiftly as they started, often leaving investors worse off.

👉Bear-market rallies are wrapped in days and weeks, not months and quarters!

In the 30 bear markets that have occurred since 1929, the stock market registered an average decline of 29.7%, and the downturn lasted for an average of 341 days.

🚨The Insight: What to expect? 🚨

🟢If a recession occurs sometime in the second half of 2022, the stock market could drop another 10% or more. Bear markets that coincide with recessions tend to decline nearly 35% on average and last for 15.3 months. If this were to be the case, the sooner it would start, the sooner it would be over given that a bear market bottoms four months before a recession, setting the stage for a “shorter than average” recessionary bear market.

🟢 If a recession occurs in 2023 that would make the current bear market twice as long as average, and likely lead to numerous bear-market rallies that…