While most people are talking about how great the stock market is these days with the Dow Jones Industrial Average pushing 17,000, financial expert Greg Melia warns that when taking a historical look, investors should be prepared for a third major drop.
"We're sitting at the top again, and one of the other things that really fits into this world, too, is the fact that in a secular bear market, we typically get three or more drops, and each drop gets worse," Melia told J.D. Hayworth and Miranda Khan on "America's Forum" on Newsmax TV
"They call it ways of capitulation," the president of Melia Advisory Group explained. "We had our first one in 2000, where it dropped by 50 percent, and then we got all our money back in 2008. It took two years the first time it dropped, and then in 2008 it took less than a year, and it dropped by 60 percent, a greater percent."
Melia contends that "we've got to be very concerned about a third drop."
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