Bear Market Rally takes us to Top of trading range

by Laura Ehrenberg-Chesler on October 13, 2011

in blog,Economic Indicators,Foreign Markets,Investment Strategies,politics

On September 30 in this blog, I suggested that perhaps there was a Bull market lurking somewhere because there was so much bearishness.

Sure enough, the market has rallied about  8.7% since the October 3rd low.

This begs the question of whether or not this is just a rally in a bear market.  Many smart investors, from Geoffrey Gundlach to Hoisington Investment Management, believe we are already in a recession, and the fourth quarter will actually show negative growth.  For now, we are erring on the side of conservativism.

As we have said many times on these pages, until we see the political will to make sweeping and constructive changes in Europe, as well as in the U.S.,  we will be mired in a recession like economy for the time being.  And, the markets will reflect this by being stuck in a trading range.

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