• 288 days Will The ECB Continue To Hike Rates?
  • 288 days Forbes: Aramco Remains Largest Company In The Middle East
  • 290 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 690 days Could Crypto Overtake Traditional Investment?
  • 695 days Americans Still Quitting Jobs At Record Pace
  • 696 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 700 days Is The Dollar Too Strong?
  • 700 days Big Tech Disappoints Investors on Earnings Calls
  • 701 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 702 days China Is Quietly Trying To Distance Itself From Russia
  • 703 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 707 days Crypto Investors Won Big In 2021
  • 707 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 708 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 710 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 710 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 714 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 715 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 715 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 717 days Are NFTs About To Take Over Gaming?
Strong U.S. Dollar Weighs On Blue Chip Earnings

Strong U.S. Dollar Weighs On Blue Chip Earnings

Earnings season is well underway,…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  1. Home
  2. Markets
  3. Other

The "Did You Know?" Series, Part II - Will There Be a "Public" Stock-Market Capitulation

Summary

Did you know that during the 10 often-troubled years of 1972 through 1981, mutual funds disinvested in stocks during all 10 them? Does this piece of history provide an important warning about the contemporary situation? An examination of this question frames this second installment of the "Did You Know?" Series.

Introduction

This second installment of "Did You Know?" is out of its originally anticipated sequence. Number two was going to examine the impact rising interest rates might have this year on corporate profits. This is more than a worthy topic in the present environment; I will get to it soon.

However, the first "DYK" installment evoked a response from several people that came in the form of a question. A solid question, too, that has inspired the current missive. The question went something like:

"When it arrives, how will I recognize the public's stock-market capitulation?"

This was in response to my observation that stated:

"I have a few key reasons for maintaining [my secular bear market] view, with the following being one of the less scientific. There simply never has been nearly the degree of capitulation by the so-called 'public' that one would expect during an episode as protracted and periodically painful as the one we have experienced."

As was the case in the first installment, I am again going to call upon the great secular bear market of the 1965-1982 era for guidance regarding the current environment. Here goes. http://www.gillespieresearch.com/cgi-bin/s/article/id=457

Back to homepage

Leave a comment

Leave a comment