Bear Market's Concerns Become Reality - Now What?

Slowing growth measures are now appearing, confirming the bear market’s price “adjustments.” The question is, “Was the 4th quarter 2018 bear market’s drop enough of an adjustment, or is there more decline to come? “Clues to the answer are coming ,The answer is neither in the current fundamental reports nor in the negative reporting and forecasts. Today’s news is what yesterday’s bear market anticipated - it is why stocks fell 15% to 20% on average. In addition, today’s negative commentary is a typical reaction to a dramatic stock market decline. To determine whether there will be another bear market shoe to drop, we need to look forward, particularly to the 2019 summer months coming. The task is neither easy nor clear, but we do have many major indicators coming soon: Company earnings reports that will both close out 2018 and provide managements’ (think insiders’) forward views of 2019.Therefore, the best strategy is to wait for those important fundamental inputs. They begin in earnest next Friday (January 11). Trying to determine the future before these reports arrive is guesswork based on incomplete information.