The S&P 500 Death Cross - Time To Panic? | Seeking Alpha
Here is a great article on death cross analysis. Based on extensive historical data, you should not be invested in the stock market for two months after a death cross. After that time, another analysis could be done to see if it is safe again to be in the market. Since the economy is doing okay, the market may indeed turn around in a few months.
Moreover, if we were really headed for a bear market, we would have several economic indicators pointing to a recession, and that is not the current case. Interest is still low enough for businesses to borrow even if the Federal Reserve raises interest rates as high as 1 or 2 percent. In addition, people are not buying extensive amounts of government bonds as they would in a bear market. Cash is the best place to be right now along with good dividend stocks that are stable during volatility.
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