I believe the current bear market, which started in early 2022, has at least another year left before it bottoms. Regardless of the time frame, I think the current bear market will take the SPX down to the mid-2000’s (it’s currently at 4,090) and the Nasdaq down to the 6,000 area (currently at 11,718). These levels correspond with severity of previous bear market declines.
There are many indicators flashing now that have signaled an impending reversal of the bear rallies that have occurred since this bear market began. Reckless YOLO speculation has reached a fever-pitch once again, as a week ago 250 million options contracts, the highest weekly volume in history. A large percentage of these options were one-day to expiration and weekly expiration calls. It’s the high volume in these calls that creates gamma squeezes.
Alternatively, the precious metals sector – gold, silver and mining stocks – are extraordinarily undervalued in relation to the general universe of financial assets as well most commodities.
Jason Burack and I discuss the bear market rally, corruption at Wall Street banks (with actual stories from my days as a junk bond trader) and, of course, the precious metals sector with a couple of my favorite junior plays.