Have We Finally Found The Bottom?

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After the major market indices have seemingly been in a freefall since the beginning of the year, yesterday, January 14th, marked the biggest rebound for 2016.

Analysts in the media believe yesterday’s gains mean that that we’ve hit a “bottom,” saying the markets are in the clear and going higher. They even suggest “buying the dips!”

Are You Profiting from the Market Plunge?

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As our dedicated readers know well, we predicted major global stock market declines since early 2015. Our analysis showed the big selling being done by Wall Street, even while their analysts told investors that all was great.

As it turned out, there was no big “year-end rally” last December. In fact, we entered 2016 the same way we ended 2015: severe plunges in the major indices.

2016 Will Be a Great Year… For the Bears

Have you ever noticed that stocks decline much faster than they rise? That means big profits for those who know how participate on the short side of the market.

We have warned about the stock of Apple throughout 2015. Bert Dohmen’s latest article on Forbes.com, from mid-December was headlined: “Why Apple Will Enter A Bear Market In 2016.”

Year-End Rally Now, But Then What?

As everyone knows, the seasonally positive period of the year has started. The recent August-September crash, during which the DJI plunged 1089 points in about 30 minutes, caused a lot of selling by over-invested money managers. But then the market formed a double-bottom on September 29. One day prior, On September 28, we issued a “Special Bulletin” saying:

The major indices are getting close to their August 24 crash bottom. Old lows provide support. There will be lots of bulls buying, thinking that a good bottom has been made. That will produce a bounce.

A Market Crash This Year?

Do you remember early 2014 when every Wall Street analyst and economist said that T-bonds would be the worst investment for the year and people should sell them?

As it turned out, for the 13 months ending January 31, 2015 T-bonds had the best performance of almost any investment sector. The Vanguard ETF investing in long-term T-bond zeroes, was up over 51% for that time.

In 2014, as late as December, we heard from the same group of “experts” that the economy would grow robustly in 2015.