Okay kiddo, this is an article about how the stock market goes up and down. Sometimes it goes down a lot because people are scared or worried about things happening in the world. But this article says that when the market goes down too much, it usually means it will go back up soon. This happened last year and made some people very happy because they bought stocks when they were cheaper. The article also says that even if the market goes down a little bit sometimes, it's not bad because it can be a chance to buy more stocks at better prices. So overall, the writer of this article thinks that the market will keep going up and people should feel good about investing in it. Read from source...
- The article is overly optimistic and assumes that bullish signals always lead to higher prices, ignoring the possibility of market downturns or recessions.
- The article uses hindsight bias, as it claims that previous bearish signals were correct in predicting market bottoms, but does not provide any evidence or analysis of how those signals performed in real time.
- The article is based on moving average crossovers, which are simple and popular technical indicators, but also have limitations and flaws, such as whipsaws, false signals, and lagging performance.
- Buy the S&P 500 index fund (SPY) on dips below $410.
- Sell any stocks or bonds that have bearish moving average sell signals.
- Reduce equity exposure by 20% if the market rallies above $450, and increase it by 20% if the market drops below $380.
- Expect corrections to be opportunities for bargain hunting, but be cautious of a potential recession in late 2023 or early 2024, depending on geopolical and monetary developments.