Is a bear market around the corner?

 

 

The above chart shows the change in profits (red line) over twelve months and the index of the Wilshire 5000. (Click on the chart to enlarge it).

 

The change in profits declined below zero percent in Q4 2014. Should we panic?

 

The last time it happened it was in Q1 of 2007. A major bear market followed.

 

Of course one gauge is not reliable. Besides, the government could make major revisions to it. However, it is important to notice that profits, the lifeblood of equities, are not as ebullient as we would like them to be.

More details in The Peter Dag Portfolio on www.peterdag.com

George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
Author, Profiting in Bull and Bear Markets
No. 1 bond timer in the past 12 months. 

Disclaimer. The content on this site is provided as general information only and should not be taken as investment advice nor is it a recommendation to buy or sell any financial instrument. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.

STRATEGIC INVESTING FOR UNCERTAIN TIMES.
Learn how to manage your portfolio risk and sleep comfortably. Improve the certainty of returns by taking advantage of business cycle trends. Learn to use simple hedging strategies to minimize the volatility of your portfolio and protect it from downside losses.

Keep updated on crucial economic and financial trends including exclusive model portfolios by subscribing to The Peter Dag Portfolio. Just visit www.peterdag.com