Why classic bear market signals are quietly reappearing in 2026

Yahoo Finance | January 29, 2026 at 01:15 AM UTC
Bearish 95% Confidence
Watch on YouTube

Key Points

  • Highlights a 'three-year rule' in market cycles, suggesting 2026 could be vulnerable after strong rallies in 2023 and potential melt-up in 2024-2025.
  • Predicts a market 'melt-up' in the near term (2024-2025) fueled by AI enthusiasm and liquidity, preceding a significant downturn.
  • Points to classic bear market signals like the inverted yield curve and historical market cycle patterns as indicators for a potential 2026 bear market.

AI Summary

The video discusses the reappearance of classic bear market signals, particularly focusing on a 'three-year rule' where the third year after a market bottom often sees a strong rally, followed by potential challenges. It predicts a market 'melt-up' in 2024-2025, driven by AI and liquidity, but warns of a significant correction or bear market emerging in 2026 based on historical patterns and indicators like the inverted yield curve.

Model Analysis Breakdown

Model Sentiment Confidence
Gemini 2.5 Flash Bearish 95%
Consensus Bearish 95%