Bear Market Warning Signs Flash as Stocks Rally
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The recent rally in stocks resembles the bear market of 2000-2003 and may indicate more declines ahead.
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Credit spreads are widening again, suggesting tighter financial conditions that could contract PE ratios and push stocks lower.
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There is little fundamental or technical support for stocks at current elevated levels based on historical PE ratios.
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The Fed remains vague on how long tight policy will remain, which could lead to an overtightening and recession.
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Many investors still want to "buy the dip," a possible sign the bear market isn't over yet.