been reporting on how the general market sentiment has tilted notably bearish.
Conventional market wisdom – as I’ve suggested ad nauseam – says that’s a good thing.
co-founder of Dow Jones & Company, inventor of the Dow Jones Industrial
Average, founder of The Wall Street Journal and the developer of the Dow Theory
(which remains the foundation of technical analysis) – identified three major
trends in a market cycle: The Accumulation Phase, the Public Participation
Phase and the Distribution Phase.
current bull market has about run its course is that, typically (and this has
been my observation over the past 32 years), when a bull market has truly run its course, it’s anything but
the popular notion.
The distribution phase takes place when newspapers begin to
print increasingly bullish stories; when economic news is better than ever; and
when speculative volume and public participation increase.
that would normally foster huge pessimism among the “smart money” – and usher
in the next major bear market – is, yet, nowhere to be seen.