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Don’t jump into stocks every time the market mounts a sizeable rally during a bear market. All too often those rallies turn out to be nothing more than bear-market traps, luring gullible bulls back into equities before the bear market resumes in earnest. Bear markets don’t end until frustrated investors throw in the towel.
The U.S. market rally between June 17 and June 24 may be the latest of these bear-market traps. In that week-long rally, the Dow Jones Industrial Average DJIA rose 5.4% and then almost immediately started…
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