How do you like your stock market bears? Long term or short term?
Barry Ritholtz at the Big Picture has been laying out his case for a decidedly lower stock market. Not a little correction, but a full-blown bear market, i.e. Dow 6,800. Based on poor macroeconomic fundamentals, overeager sentiment and the lack of a solid correction increases the probability of a big drop according to Ritholtz.
The S&P’s last major correction was a 33% drop from March to July 2002. That was 42 months ago — implying we are overdue for another steep decline.
Michael Grebb at Wired.com interviews Harry S. Dent author of assorted “Boom” books. Dent sees another stock market bubble coming that rivals the previous Internet-driven bubble that lasts until 2010. Following that comes a long decline. Apparently all you need is his book and a calendar for investing success. Go figure.