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When Will The Stock Market Balloon Pop Again?

Let’s start with a helpful analogy that will frame our discussion today. And that is to appreciate that the stock market is quite similar to a helium balloon. Meaning that its natural state is to float higher unless it is being held down by a stronger, negative force that pushes it lower.

Now if we pull back to the big picture, we can easily appreciate that state of floating higher is true because 85-90% of investment history is framed by bullish conditions where going up is more likely than going down. However, we find this picture to also to be the case during bear markets when negative events are removed.

Now let’s start looking ahead. Because if we can clearly see if there are more negatives or positives ahead…then we can appreciate where the balloon (stock market) goes next.

Let’s dive in.

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