Help me to Retire

Well what has been going on since March…

The market has taken off recovering around 20% but is this an ongoing recovery and new bull market or is it just a bear market rally?
Well I’d love to give you a definitive answer to that question but as you know there are no certainties in the financial markets.
The rules regarding confirmation of a new uptrend require an advance followed by some consolidation followed by another advance creating a higher low and new high. There is a good possibility we are in this consolidation phase now as long as we get that higher low and then the market once again goes higher creating a higher high. Of course the other possibility is that we are in a bear market rally and we are heading for a new low or some sideways action. This is also very possible with plenty of bad news still around and consumer confidence at all time lows. Most companies won’t be breaking any profit records for a while. The trick will be finding those few companies that are doing well!

Remember, the stock market always recovers well before the real world does so keep a close eye out. The bottom may have occurred already or may be just around the corner.

Time will tell where we are at, good luck with your investing.