With finance experts and experienced investors constantly issuing bleak warnings in relation to the macroeconomic landscape, influenced in part by the several banking giants crashing in recent weeks, the risk of a bear market is the highest in decades.
As it happens, the bear market probability model on a 20-period moving average (MA) currently stands at 0.8 points, the highest level since the 1950s or in the last 70 years, according to the chart shared by the pseudonymous financial markets analyst Game of Trades on April 28.
Bear market probability model. Source: Game of Trades
Indeed, the chart indicates that the bear market probability in the 1950s at one point stood at around 0.75, which is still lower than its level nowadays, having neared this area again only 20 years after that – in the 1970s, and the expert has advised investors to “buckle up.”
It is also worth noting that InTheMoneyStocks.com chief market strategist Gareth Soloway has predicted an “atrocious” market
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