The bear market rally
in crude oil/metals has led to capital flows to bombed out Toronto/Vancouver equities.
And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally
from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
However, 54% believe we are in a bear market rally
and stocks will make new lows.
These signals are based on the intrinsic behaviour characteristics of equity markets: upward trends are usually accompanied by lower volatility (except in bear market rally
situations) while bear markets experience higher volatility.
Rosenberg said he sees "a bear market rally
as opposed to the onset of a new secular bull market" and urges investors to stay cautious.
There is a risk that this is a bear market rally
and the situation could reverse when such liquidity leave the cities or country, or there is new shock to the economies," explained LaSalle Investment Management's Asia-Pacific head of research and strategy Kenneth Tsang.
Given that current conditions clearly qualify as a bear market under this definition, we can only assume that we are in the midst of a strong bear market rally
Polled following Bolton's comments, three-quarters (75%) put the surge in equities down to a bear market rally
Everyone is asking, is this a bear market rally
, where investors just buy shares as they look very cheap relative to earlier highs, or is it a genuine and sustainable recovery in the stock market based on sound fundamentals?
There has been other good news with most financial markets starting to showsome signs of recovery, although many people are sraying that this is not a real recovery but just a bear market rally
before markets start to go down again.
Opinion is divided over whether this is a bear market rally
or the beginning of a new bull market – I think it has a the chance to be a new bull market," he wrote in a note to clients, according to the Independent.
The current momentum could result in some stocks and markets entering the results season at the top of the bear market rally
(if not after the peak) and that increased liquidity around during this time could be used for profit-taking," says EFG-Hermes about the UAE and regional markets, which have enjoyed a decent rally in recent weeks.