Screaming “Bear Market Rally”
In the summer of 2009, I was a regular guest on CNBC shows like “Larry Kudlow”. We believe we were invited to participate in those panel discussions because we were the token “bull” in the conversation and I am obnoxious enough to state my piece against significant mental and verbal opposition. The US stock market had bottomed in March of 2009 and rallied explosively into the late spring and early summer. We felt that the March lows and big first move of the bull market were similar to the move the US stock market made in August of 1982. However, the choruses of experts were screaming that we were in a “bear market rally” and that only fools would buy stocks at those “inflated” prices. The wide-spread consensus back then appeared to be that that the rally was only temporary. We believe the psychology of that group think was a great predictor of what has come to pass.
