By that he meant that smart money or ‘rightful owners’ sell their stocks temporarily to public investors at high prices near market tops, but then buy them back at low prices when investors bail out at the lows of the subsequent bear markets.

What is going on reminded me of his arrogant remark because, while public investors have been bailing out at such a frenzied pace over the last couple of months, others have been quietly buying at low prices.

The market always looks ahead and begins its next bull market while a recession is still underway and worsening, while public investors are at an extreme of pessimism.

So obviously at some point it has to begin to rise in spite of continuing bad economic news. Since public investors aren’t buying, it has to be institutional and other 'smart money' that begins to buy in anticipation of improving economic conditions six to nine months ahead.

And the market has to continue to climb a wall of worry for quite some time, until the economy itself begins to recover and public investors become less fearful."

Yes they had Bear markets in the early 1900's and many since that time. They come and they go. Just as this one will also go.

The smart money that sold near market tops will be buying near the market bottom.

Have we reached the bottom or are we near the bottom.

That is the question.

Bear Market is a 6 to 12 month period when the kids get no allowance, the wife gets no jewelry and the husband gets no Lovemaking

Sorento