Panic Selling or Bear Market Coming?
Is the August 4th, 2011 stock market signaling the kind of “Panic Selling” that contrarians look for in forecasting the end of a decline or has a August 2011 “Bear Market” just started?
The Aden sisters, whom are both prominent technical analysts, emailed clients today with their advice to sell all equities — earlier this summer, the Aden sisters reduced their market exposure.
Direct and to the point, Mary Anne and Pamela Aden wrote, “We now recommend selling all of your U.S. and global stocks, as well as your energy and resource stocks (totaling 30% of your total portfolio), and keep the proceeds in U.S. dollars for now.”
The Aden Forecast is one of the most influential and successful investment publications in the world today. Written and published since 1982 by the internationally renowned market analysts Mary Anne and Pamela Aden, The Aden Forecast is a monthly 12-page investment newsletter specializing in all major markets with special emphasis on the precious metals, currencies, and natural resource markets.
Their advice should carry a lot of weight in the equity markets, because of their long-term performance. They are ahead of a buy-and-hold in the stock market not only over the last 12 months (6.8% vs. 3.8%) but also over the last ten years (12.1% annualized vs. 3.7%) respectively.
Only a few advisories have issued such blanket “Sell Everything” recommendations for 2011 — so far. More downside action was needed before a durable bottom was in place and with analysts such as the Aden’s now saying to sell everything, it’s not unlikely that many other advisers will quickly follow suit.
A “Wall of Worry” could quickly begin and the market could start climbing back up on it.
Tags: Aden Forecast, Aden Sisters, Advisories, August 2011 Crash, Bear Market, Buy and Hold, Contrarians, Currencies, Downside Action, Durable Bottom, Investment Newsletter, Market Exposure, Natural Resource Markets, Panic Selling, Precious Metals, Sell Everything, Technical Analysts, Wall of Worry