The Bull Rally Is a Bear Market Bounce


Van Bryan

Aug. 11, 2019


“Monster bloodbath.” That’s how the mainstream financial press described Monday’s fall in stocks. In a four-day span, $1.4 trillion had vanished. Investors are wringing their hands. “Is this the end of the bull market?” they wonder. This week, Bill had some bad news. It was never a real bull market anyway. The action in stocks for the past eight years has been nothing more than a bear market bounce. And this week, Bill proved it.

image The Doom Index Is Heating Up…
To start the week, Bill checks in on his proprietary Doom Index. The system is designed to alert investors when the conditions for a crash are ripe. In 2019, the Doom Index feels the earth begin to rumble. Storms are on the horizon.

image China’s Role in the Worldwide Bamboozle
The U.S. government labeled China as a “currency manipulator.” President Trump has gotten tough on America’s great economic adversary. But Bill is skeptical that POTUS will take things too far. China has a role to play in the great economic swindle of our time…

image Mr. Market Will Shut This Party Down
With stocks rebounding on Wednesday, the bull market seems alive and well. Pour a drink. Turn up the tunes. The party goes on. But as the old-timers say, the mission of a bear market is to take down as many fools as possible. And Mr. Market will bust up this party before long.

image The Fed Can’t Fool Gold
As Bill likes to say, people are prepared to believe any number of impossible things. Investors believe that the Federal Reserve’s rate cuts will make us all richer, for instance. The Fed can fool Wall Street. But it can’t fool gold. Here’s what gold is saying about this so-called “rally.”

image What Our Grandkids Taught Us About Stocks
In the French countryside, Bill’s family visits. A granddaughter asks our editor a surprising question, and inadvertently delivers an insight into the madness of markets…

image Have You Added Wall Street’s “Holy Grail” to Your Portfolio?
With stocks falling by as much as 3% early in the week, investors are on edge. On Saturday, Wall Street veteran Teeka Tiwari takes the wheel as our weekend guest editor. Teeka shows why asset allocation is important now more than ever. Here are the three places Teeka recommends to find shelter from falling stocks…



Van Bryan
Managing Editor, Bill Bonner’s Diary