Money Morning

This Bear Market Indicator Is Off the Mark

Investors are taught that bear markets can’t occur unless the Treasury yield curve inverts – that is, unless short-term interest rates are higher than long-term interest rates. 

And that can only happen if the Federal Reserve raises the Federal Funds rate, which is the short-term rate that the Fed controls.

But that measure may be off the mark this time, and here’s why…

Death Cross vs. Golden Cross–And the Winner Is…

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It’s been 14 trading sessions since the financial media was abuzz with the fact that the Russell 2000 Index experienced a Death Cross. That is to say its 50-day simple moving average (SMA) trended below its 200-day SMA. The coverage was all about why the Death Cross spelled impending doom for small-cap stocks and, by extension, the entire stock market.