RiskAverseAlert

S&P 500 Golden Cross: Bullish or Bearish?

This really is a no-brainer. The more developed commentaries on the Golden Cross are quick to point out the record of this indicator during recessionary periods. It is an incredibly reliable signal of bullish conditions looking out months forward.

HOWEVER, THERE'S JUST ONE PROBLEM WITH THIS ANALYSIS:

We are NOT in a recessionary period. Instead, we are in a state of outright collapse. Those who deny this probably are the same folks who scoffed in 2000 at those calling the "new era" in technology a bubble.

We are in a state of collapse. The stock market (and equity in general) presently is in its "rearranging the deck chairs" phase. Over the next couple years, the market likely will collapse. Equity is DEAD MONEY. Long live debt. (How many more bailouts do you need to see before this FACT sinks in?)

Of course, there's no such thing as a "sure thing." However the risk is clear. One might duly note, too, that, denial of this possibility is frightfully pervasive. This, itself, is a huge red flag signaling the risk averse alert investor to remain extraordinarily cautious toward equities...