As far as equities are concerned, make no mistake, we are in the throes of an intense bear market rally, which is likely at the very late stage. Nobody will know to get out at the peak and as we saw in late 2007 and into 2008, many of the “longs” will be trapped. Bear market rallies are not the same as secular bull markets — the former are to be rented, the latter are to be owned. Those
claiming to be adept market timers today that have been and are staying long will be repeating the same mistake they made three-years ago.