Bear Market

Are we in a bear market? Yes. Most definitely. In all things.

The sign of a bear market is that the expectation is the immediate return of asset pricing, long after the down turn. This is most visible in the oil market.

The CDNX topped out in February, 2007, when the $BKX topped out. A notable exception to the rule is Canadian banking stocks.

Gold mining assets are likely to lag, though yields will improve as the gold price advances. Generous P/E ratios might not be a given, especially since liquidity is not there as it was a couple of months ago.

Everyone criticizes the banking bailout, yet fully expects Quantitative Easing to benefit their investment strategy. Very likely they're in for a nasty surprise.

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stockcharts.com

-F6