There is still a debate as to whether the current run-up in stocks is a “bear market rally” or the beginning of a new bull run.
My stance is: I tend to stay away from the business of predicting. I respond to price action and what the market gives me. Having bias one way or another can very easily get you into trouble.
The fact is the major indices have now rallied some 16% from the June lows. To put that in perspective, since 1950, there have been 48 bear market rallies. Of those, six have exceeded 13% and only four have exceeded the current rally (16%).
If this does, in fact, turn out to be a bear market rally, it will be one of the largest ever.
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