Is the bear market about to make a comeback?

February may have been another great month for global stock markets, but there are strong signs that we could be about to see a return to the bear market that began in 2000.

The long-term transition from "Primary Bear Market" to "Primary Bull Market" is invariably based upon valuation. A low valuation is usually represented by a P/E ratio in single figures. This has traditionally signaled the end of a Primary Bear Market and that has not yet occurred. For this reason we believe the stock market is specifically at risk to a resumption of the Bear Market that started in 2000. A continuation of the Bear Market could be very dramatic and is likely to be triggered by a reversal of the global liquidity story.

Stock markets have another good month

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