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Corrections vs. Bear Markets

SMI has always believed that helping investors form realistic expectations is important to their long-term success. That's because investing success is primarily driven by controlling one's emotions, and knowing what's
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Annual Seasonality Sell Signal Triggered – Spring 2018

Well, this certainly isn't an "ideal" sell signal for the annual seasonality system. Ideally, the market is performing well coming into the last of the "six best months" of the year: November-April. Then as the market
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An Unfavorable Election Cycle Is Close at Hand

One of the more interesting historical stock-market patterns is commonly referred to as “annual seasonality.” The main idea is that each year contains a six-month period which has been “favorable” for stocks (November
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Growth/Value Disparity Highlights Importance of Upgrading

Barron's reported in its March 19 issue on the widening disparity between growth and value mutual funds (unfortunately, the article is available for subscribers only). On one side are value managers who can't justify the
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SMI on the Radio: Preparing for the Next Bear Market

Someday the long-running bull market will reverse course. We can't know when that will happen, but it's a certainty. A wise investor should keep the fact that "bears always follow bulls" in mind and act accordingly, as
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Tech Growth Forces Sector Re-Shuffle

Technology stocks have been on quite a tear in recent years. Plenty of ink has been spilled detailing the incredible gains of the FAANG stocks (Facebook, Apple, Amazon, Netflix, Google), and rightly so. Those five stocks
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Happy 9th Birthday, Bull Market

By most accounts, the current bull market will turn 9 years old this Friday (March 9). A few holdouts will say its birthday was actually yesterday because March 6, 2009, was the day the bear market hit its lowest intra-day
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Nerves of Steel?

If we seem to talk about the importance of preparing for a bear market a lot, it isn’t your imagination. But that doesn’t mean we believe a bear market is imminent. It’s just that, after such a long upward climb, we feel
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Recent Correction Raises the Question: Are You Ready for the Next Bear Market?

The winds of change blew through the financial markets in February, leading to the first stock-market correction (a decline of at least 10% from the previous high) in two years. What caused the correction, and
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Bucket Challenge: Managing Cash Flow in Retirement

The rapid stock market decline in early February serves as a stark reminder that downside moves can develop quickly. Long-term investors can ride out such volatility, of course — but what if you’re a retiree relying on
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