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NYT on Bear Markets

Bear markets in stocks are rare but have the power to spread gloom through the economy. In the last 20 years, there have been only two — one that began with the financial crisis in 2007, and the other that started with the dot-com bust in 2000. Market downturns can gather steam even without strong evidence that economic and corporate fundamentals are weakening.
-- As Markets Tumble, Tech Stocks Hit a Rare and Ominous Milestone

They're actually not that rare. And ominous? Please. We're three months into this bear market (my definition) and the natives are getting restless - which is actually a bullish sign! I have no idea how much longer this bear will run, but I am starting to do a little buying of the Spiders (an ETF that tracks the S&P 500 index).

S&P 500 Weekly Chart
S&P 500 weekly chart, with 10-week (blue) and 40-week (yellow) moving averages

I'm not expecting a giant turnaround in the next few weeks, but scaling back into the market over the next six months seems like a prudent move. We hit an 18% decline from the September 21st high of 2,941, on Friday. That's very close to the traditional 20% mark, where many pundits classify a decline as a bear market, and not just a correction.

-- Scrib