We’re Officially in a Bear Market
In this post, I’m going to share my updated thoughts on the official bear market we have entered, as well as some educated guesses as to when things might begin to finally turn around.
I’ll also share a technique that’s allowing me to earn 7% APY on the cash I’m holding on the sidelines — waiting to be deployed into the markets.
Where are We?
As I’m sure many of you are aware, the Nasdaq composite is a stock market index that includes almost all stocks listed on the Nasdaq stock exchange. Alongside the Dow Jones Industrial Average and the S&P 500, it’s one of the most well-known and closely followed indices.
The total number of stocks within the index exceeds 3,000 — and includes real estate investment trusts (REITs) and American depositary receipts (ADRs).
Down more than -20% year-to-date, the Nasdaq is officially in “bear market” territory.
The question on everyone’s mind, considering a lot of the companies we know and love (Apple, Amazon, Qualcomm, Tesla, Nvidia, PayPal, Netflix, etc.) are in this index, is “how low can we go?”
To help us solve this “mystery” we need to look back to previous corrections and crashes — something we started to do in this post here. From a technical perspective, looking toward popular moving averages like the 200-week EMA and the 40-month EMA — let’s start with the 200-week.