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Bear market is over

Yes, this bear market is over despite what the talking heads and other morons will try to tell you. Six months of selling and extreme bearishness is enough. Why? Despite the high inflation, which is, by the way, going down, supply chain issues that are improving, and a war in Ukraine, which is stalling, the US economy is still solid and able to overcome the FED’s interest rates.

People were used to cheap money and zero interest rates for a long time. They forgot what it looked like in times when the rates were at 3%, 6%, or even 13% high, and the US economy was capable of churning higher. Now, the FED raises rates to 3%, the economy slows down, and for many imbeciles out there, it means the end of the world. Wake up!

In this bear market, the stocks got adjusted. Many trash companies have already corrected 80% to 95%. Some may even go under, but that will have little impact on the overall market. And it cannot go below zero. If a trash company that made no income for years corrected by 90% drops another 10% and goes bankrupt, we will probably not notice it (unless you are the bag holder).

And the sound, high-quality companies that corrected with the trash companies, which is typical in bear markets, are now subject to bargain hunters. Get ready for FOMO.

bear market

We may see some choppiness as bears will not give up easily. Many burned bulls are now afraid and will be sitting on the sidelines as they won’t believe that the bear market is over. And when they get it, they will start chasing it and push this market higher.

The chart above shows that our next price target is at the $4,118 level. Expect some choppiness and battles between bears and bulls. Possibly even a pullback (this week will tell us how deep). Watch for the FED to pivot when that level clears, and inflation eases (and trust me, it will). And remember all those imbeciles on YouTube deleting their fearmongering predictions to avoid embarrassment.


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