A market bottoms when we reach what is known as the “point of maximum pessimism”. This means that investors have lost so much money they completely throw in the towel – and shares correct to an undervalued level.
“All the things are in place for the bear market to have ended,” he said. “When there’s a strong consensus, a very negative one, and cash positions are very high, as they are at the moment, I’d like to bet against that.”
