by Adam Hamilton, Zeal Intelligence
With the US stock markets near major multi-year highs, traders are naturally very optimistic. Predictions abound for a continuing advance to new all-time highs. But behind this happy facade, the secular picture is actually quite bearish. The powerful stock bull of recent years appears to be topping in recent months. This means the odds are ballooning that a new bear market is being born or soon will be.
Few, if any, things are more important for stock investors to understand than the bull-bear cycles. They can only be ignored at great peril. Investors who refuse to study them inevitably end up buying stocks at the wrong times in these cycles. And that derails their wealth-building progress for many years. For example, today the US stock markets remain lower than they were in March 2000 over 12 years ago!