Jeffrey Bernstein

Why I Bought the Ultrashort Financial Sector ETF

All of the fears you outlined above and more have resulted in the market downturn we have experienced. You will need new bad news to catalyze a lower low in the markets and financials. I personally had been a believer in a lower low and a more rapid decline in the economy. The Bear Stearns bailout may have forestalled this. The massive money creation by the fed may be propping up the economy. Don't fight the tape. negative moving averages argue for a long period of basing in the market, but a lower low is unlikely without some new heretofore unexpected calamity - 9/11 and the Enron, Worldwom scandals were arguably those type of events in the 2000 - 2003 bear market - hard to bet on.