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When Will this Bull Market End? Because it Will End

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Here, “stocks are advanced on hopes and expectations” – Robert Rhea

When will this bull market end? Because it will end. The market is simply a collection of people’s emotions. How stable can that be?

Over the weekend I re-read The Dow Theory Today by the late Richard Russell. It’s a collection of twelve articles which were written and published in Barron’s during the period of December, 1958, through December, 1960. This is not a history lesson because the articles were written, much like writing about today’s markets, while taking on live fire. The future was not known. That’s the life of an analyst. In the article “Bull or Bear Markets” from March 23, 1959 Russell writes:

A primary bull market is a broad upward movement of stocks interrupted by frequent secondary reactions. There are three phases in a bull market. The first it the return to known values following the depressed conditions of the previous bear market. The second and usually the longest phase is caused by the response of stocks to bettering business conditions and improved corporate profits. The third phase is characterized by feverish speculation, rampant inflation, and a highly promising economic outlook. Here, as Rhea tells us, “stocks are advanced on hopes and expectations.”

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E.J. Smith

Editor-in-Chief
E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@youngresearch.com.

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