Beware The Death Cross? | Seeking Alpha

Beware The Death Cross? | Seeking Alpha



Eric Parnell has written a very good article on the history of the Death Cross on stock indexes where the 50 day line falls below the 200 day line.  Eric believes that a lot of the decline has already happened by the time the death cross is triggered.  He also mentioned that this scenario is often a short term bottom for a stock market correction.



I think Eric is right that the current death cross is probably just a correction rather than the beginning of a bear market.  The economy is still doing okay and interest remains low.  Until interest on the 10-year bond gets to around 4% or the economy tanks, we should be invested in stocks.  Some of my favorite picks are PFF, AMBA, and REXX.