Don’t Chase This Market

After the massive decline of the last few weeks, the temptation may be great to jump back aboard at the first sign of a significant upturn because "the market is undervalued."  Well, the market may be undervalued, or not, but it isn’t going to make any difference, because we’re in a bear market now.  There’s isn’t much sense in buying a rally in a bear market, because the rally will inevitably peter out and then prices will reverse downward and the investment will be nullified.  In its investment newsletter, CandleWave counsels against joining the crowd in a bullish rally in a bear market, for disappointment will surely follow.  The sole exception might be the situation in which an aggressive and nimble investor who can stay close to the market during the day will take a speculative position in a bullish rally in a bear market