Stocks

Last week, I had a flashback moment. I flashed back to October 3, 2000. To most of you, that date probably means nothing, but let me explain.

This is a chart I’ll keep a close eye on in the coming weeks, as it could be giving us an early warning to a looming bear market.

Everyone is looking for a reason as to why the broad stock market indexes plunged this week. The actual reason is pretty simple.

This happened before bear markets that led to losses of 50% or more in 1972, 1999 and 2007. It also happened before the 1987 crash.