Sunday, April 15, 2012

Has a New Bear Market Just Begun?

Bear Market Swan Dive

After three years of a predominantly one-way existential bailout rally engineered by political elites and central banks in response to an all-out worldwide solvency crisis, led by the United States, yes, it is quite possible that we have seen the highs in equities for this rather bizarre liquidity and QE-fueled bullish cycle.

Bear in mind however, that longer-term uptrends remain intact and despite the seemingly impossible, authorities continue to tout undeniable success in fostering extreme levels of prolonged “risk-on” complacency as evidenced by VIX readings persistently south of 20, which is quintessentially reminiscent of the “great moderation” failure imposed by none other than Greenspan, Rubin, and Summers.

The Warning


Against this increasingly surreal backdrop of financial alchemy to the umpteenth degree, (check out the drumbeat of warnings from 1987-present) we suggest a strong dose of measured caution if you are considering a mad dash toward Chasing Armageddon with a boatload of all-in short positions.

Despite the dire writings etched deeply upon the never-ending wall of worry, left to their unfettered devices and mindless mandates, the still-perceived masters of our financial universe horde untold weapons of financial and economic destruction that can further skew valuation metrics further and further from any semblance of plausible reality.

Smart Investors Survive Bear Markets

If you can spare less than an hour, and you have yet to see Frontlines “The Warning,” we highly recommend that you take the time to do so in order that you gain a better understanding of just how deeply embedded and influential the masters of our financial universe really are.

Yes, their tool bag of tricks is limited only to their academic imaginations, which in turn, the lemmings of greed dutifully follow as in their minds; the political elite and central bankers of the world are the pied pipers of never-ending growth, bull markets, and endless prosperity for those closest to this deceitful and hopelessly corrupt band of top feeders.

Given such fiction reality, anything is possible including a retest or besting of the all-time historic highs.  If the current bull market still has any life left in it at all, we have detailed just how far it may go and when it may end (if it hasn’t already) in Part-I of a Special Report that we have recently made available to the public.


So, if it’s already here or when it comes…


How do you ride a bear market


Yes, it is that simple!


For the month of March, the benchmark S&P 500 put in another decent performance, up another 2.11% for the month, which puts it at a 12.59% return year-to-date.

This is a phenomenal quarterly return considering that the average yearly return for the past ten years has been just 4.12%.

This month, Elliott Wave Technology’s Chart Cast Pilot portfolios beat the S&P 500 returning 3.61% vs. the benchmarks 2.11% returns.

You can checkout our complete returns for March to see precisely how Elliott Wave Technology’s Chart Cast Pilot stacked up against 29 of the best in breed hedge funds for the first quarter of 2012.

Until Next Time,