“As we know from experience, every small bear market started out as a correction – and every big bear market was initially a small bear market.”

Jim Stack of Investech Research (www.Investech.com) goes on to say: ” This sharp pullback has brought out a large contingent of investors who are proclaiming that now is the time to buy the dip… Today’s market, however, is full of younger investors who have virtually never been burned by this strategy; and if they’re wrong, this could turn into a painful lesson.”

Watch our Friends Talk Money podcast, taped last month as the market was peaking. https://www.youtube.com/watch?v=GXNoc7KIUOg

We discussed whether people understand the risk they are taking — after a long bull market. It’s worth watching. And the latest issue of the Investech Research newsletter details his indicators that are flashing warning signals. Ask for a free copy of the latest newsletter.
I agree completely with Stack’s concluding lines: ” If we err in our current assessment (not likely), we prefer to err on the side of caution.”