by Avi Gilburt
First, you are likely viewing this “bear market” as having begun 6 weeks ago. Yet, if you actually understood the broader market in a bit more depth and better context, you would actually be viewing this “bear market” as having begun in early 2018. This is actually supported by the great majority of the stocks underlying the market. So, while the SPX rallied much higher than its 2018 highs, most stocks as well as many other indices did not. So, much of the evidence suggests this “bear market” has lasted over 2 years at this point in time, and is likely closer to its conclusion than just beginning.
Second, one has to question the common acceptance of the definition of a “bear market.” The common belief is that any decline of 20% or more is a bear market. But, why do we accept such an arbitrary definition for the term “bear market?” In fact, I actually view this action as part of a larger degree “correction” in the rally off the 2009 lows.