Tuesday, September 2, 2008

Bear or No Bear

Tonight I've got another long term chart for you. Over the last 28 years the 20 month moving average has only turned down in bear markets. It's turned down again.

I started to hear a lot of talk this moring on the financial media how falling oil prices would save the economy. Amazingly enough I even heard that lower gas prices would translate into home owners being able to pay their mortgage and thus foreclosures would slow or cease.

All I have to say is where do they find these people? The damage has been done, we are in a bear market no matter how much one wants to deny it. Actually denial is what caused investors to ride the last bear all the way down into the 02 bottom.