Even though we just experienced a fierce bear market rally, I still remain bearish on the economy and the stock market in the longer term. I don't have a fancy theory to claim I must be correct, my reason is just a common sense.
We just experienced a fatal destruction of our economy in less than six months, our banking system is almost gone, our banks almost went under, all of above make me hard to believe the worst would be over so soon and a new bull market is coming as lots of investors hope.
Imagine if a top athlete just recovers from a cancer, will he immediately be able to go back to gym and fight ground right away? The recovery will take much longer.
There is a possibility that we have seen the worst part in the stock market, but don't count on it and celebrate it too early. We still have a lower low on S&P and Dow Jones.
Take some profit off the table and wait to see where it wants to go next.
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