Larry McMillan's 2012 Market Forecast

By Lawrence G. McMillan

...We still expect a bear market to unfold – one that will be far more severe than what we’ve seen in the last few months (although perhaps not so volatile).  It is likely that the next bear market will take out the 2009 lows, thereby souring an entire generation (or two) on stock ownership for much of their lives – as happened with investors in the 1930's.

Let’s begin by once again looking at the comparison of the current market with that of the 1937- 1942 time period. The direct mathematical correlation between these two periods has declined somewhat of late, but that doesn’t mean the comparison is invalid; it just means that one is not a carbon copy of the other.  We all know markets don’t repeat exactly, but they can be quite similar (they “rhyme,” as the old adage says)...

Read the entire 2011 Market Review & 2012 Forecast article (published on 12/23/11) by subscribing to The Option Strategist Newsletter.