Has The Bear Market Rally Run Its Course?

Volatility And Liquidity Since the Bull Market peak last fall, volatility has gone through the roof.  “Volatility” is how market traders describe and measure the variation in prices or returns.  Higher volatility is a direct reflection of greater investor uncertainty AND less liquidity. Volatility determines investor perception of risk. “Liquidity” is related to volatility, but […]

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BEAR Market Over or BEAR Market Rally?

Asset Re-Balancing To the Rescue? Asset allocation is nothing fancy.  Certain investors, especially Pension Funds, routinely target a specific stock-to-bond ratio for their portfolios, for example 60/40.  Since stocks and bonds will have different returns, the portfolio is brought back to its target ratio at the end of each quarter. If the equity portion of […]

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Characteristics of Bear Market Rallies

Characteristics of Bear Market Rallies We started to cover the topic of “Bear Market Rallies” in Mondays’s piece, “Mr. Market’s Bear Market Rallies” (https://markonomics101.com/2018/10/14/mr-markets-bear-market-rallies/).  Their behavior differs so much from the type of trading in Bull Markets, that they have their own signature.  This is quite valuable because of its informational content,  but also provides […]

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