JPMorgan Data Shows the Consequences of Being a “Perma-Bear”

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Ever since this bull market started, the financial media has been urging you to sell everything, go to cash, and start preparing for the end of the world.

But with the economy still so strong – including the lowest unemployment in 50 years! – they’ve had to change their story. Now, Barron’s is speculating that stocks will be roughly flat next year. That’s right… as of Monday, Barron’s 2020 Outlook is for the S&P 500 to gain just 4%.

That’s low enough to make some folks nervous about their retirement. But remember, you’ve got to take these things with a grain of salt. Fear sells, and the media need to attract eyeballs for their advertisers.

I came across one study from JPMorgan that demonstrates this perfectly.

This chart takes some of the biggest names on Wall Street – the guys who are constantly headlining the financial TV networks – and looks at the first time they started calling for a crash. Those downward lines show the results if you’d retreated from stocks into bonds after hearing that.

In some cases, you could have lost 60% of your money had you listened to the so-called “experts.”

Keep in mind that the markets are up over 350% since this bull market started.

Unfortunately, these folks are still on TV spewing the same old doom and gloom.

People said the same thing back in late 2015. Just like we’ve seen in 2019 (with all this chatter about the trade war), the culprit was China. Chinese stocks had gotten overinflated… and finally the bubble burst. Not only did Chinese stocks get hit; the U.S. and European markets were affected, too.

By January 2016, people were wondering if the worldwide bull market was over:

“How China could trigger a global crisis”
– The Washington Post, Jan. 11, 2016

“George Soros Warns of Global Economic Crisis Amid Market Volatility”
– Fortune, Jan. 7, 2016

“The world has glimpsed financial crisis. But is the worst to come?”
– The Guardian, Jan. 24, 2016

Well, guess what? Stocks didn’t stay down long:

The S&P 500 gained about 10% in 2016.

Looking ahead to 2020, all the signs point toward historical gains.

The stage is set for carefully selected, high-quality stocks to go up 300%, 500%, and even 1,000% over the next couple of years.

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Article printed from InvestorPlace Media, https://investorplace.com/moneywire/2019/12/jpmorgan-data-shows-the-consequences-of-being-a-perma-bear/.

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