tiredinvestor

Market Struggle at 50 Day Moving Average, Again

For a stock to be higher it is necessary that someone considers it still a bargain and pays more for it and so bull markets depend, basically, on a net inflow of capital in the market.

So, is it possible to call for a definitive bottom now? I do not think so: money is scarce and we are still in the deleveraging process. Normal people is busier keeping its job and regular income than investing.

Of course there can be rebounds in the market based on speculators and bottom chasers but I do not know anybody that is considering buying for the long term because they prefer cash in case things get nastier in the future.