SOS 3 different way to look at market

by Claus Vogt

Conclusion: Longer-Term Still Bearish, But Medium-Term I’m Bullish

Bringing all the above together you could draw the following picture for the stock market:
Valuations are high on a historical basis and a long-term negative, but medium-term they’re meaningless.

Macroeconomics are longer-term negative or at least doubtful, but medium-term bullish.
The technical analysis is long-term bearish, but medium-term bullish.

So all in all there’s a rather strong case for a medium-term bullish forecast for the stock market, tempered by a long-term bearish background. This picture should prevent you from getting careless or euphoric and make it clear that there are risks with getting fully invested.
But it also seems to be prudent to consider being partially invested in the stock market to profit from any medium-term surges. You just have to be very flexible and on the lookout for signs of renewed weakness.

This is no time for buy and hold investors. But there are attractive opportunities for medium-term oriented investors willing to buy now and get out on a moment’s notice.