While cryptocurrency markets continue
in a bearish cycle this month, Bitcoin price forecasts have become decidedly more down to earth, while outright critics have also softened their stance.
Because
in bearish cycle like in 2002 and 2008, any stock will collapse.
Not exact matches
Far from being perma -
bearish, our present methods of classifying market return / risk profiles encourage a leveraged long position about 52 % of the time
in market
cycles across history, encouraging a partially - hedged stance about 12 % of the time, fully - hedged about 31 % of the time, and hard - defensive as we are today about 5 % of the time.
The faith
in the effectiveness of interest rate cuts has driven the percentage of
bearish investment advisors to a dangerously low 25.5 %, while the average equity allocation of Wall Street strategists is now above 70 %, the highest level
in this market
cycle and quite probably a record.
Those syndromes were effective
in other
cycles across history, but
in the advancing half -
cycle since 2009, our
bearish response to those syndromes proved to be our Achilles Heel.
The primary mistake that those who were
bearish on profit margins made
in earlier phases of the current market
cycle — and I would have to include myself
in that group, at least for a time — was not the mistake of having «wrong» beliefs about the subject, but rather the mistake of assigning too much confidence to those beliefs.
These
cycles can be characterized
in various ways but are usually associated with bullish and
bearish outlooks as well as recessions, recoveries, expansions and contractions.
I don't know if I am that
bearish, but I would expect at least one back - up
in junk yields before this
cycle ends.