When is it safe to start buying stocks again? We’re not there yet, but these are the six signs to look for
Big stock market drawdowns like the current one often end with a selling frenzy, called capitulation. “It’s a basket of things, but when they start to pile up, it gives me more confidence,” says Larry McDonald of the Bear Traps Report. While several investor sentiment opinion polls suggest extreme negativity, you don’t see the same signal when you look at what they are actually doing with their money, says Michael Hartnett, Bank of America’s chief of investment strategy.