My most requested table is finally here.
Here is every prior Bear Market in $SPX history (-20% drop from a unique All Time High) with dates/notes on the initial bounce after first entering Bear territory and then what it did next.
The NOTES column is the most important. pic.twitter.com/W3Y1hom8tH
— OddStats (@OddStats) January 8, 2019
Good article at ZH today re: markets are no longer powered by valuation but rather by liquidity. Tells you the only 2 things you need to know. First….there’s no price discovery, a thing is not worth what it’s worth. Second…..endless liquidity foreshadows serious if not hyper, inflation.
price discovery not needed,wall st,the fed & the bankers tell us what things are worth–
the govt & the fed said that there is no inflation,and i believe them,not some broad shopping walmart who whines because her bill is bigger every week for the same amount of goods–those grocery execs deserve their bonuses–
get a new pair of shoes–
most interesting, hope everyone takes time to read the notes.
The sell off in December is a prelude to more pain, based on history, and intuition. I put in some trades below the lowest listed prices for XOM, VZ, before the xmas holiday, and they still triggered. This was obviously the bottom for 2018, but it indicates to me, that the selling is not over. What we see now is called the suckers rally, to get the last few dimes out of the heard, before the next leg down.
This is not the end of the world, it is just how the market works now, the markets are as dysfunctional as our political leaders, it really is nothing but legalized gambling, and the house always wins.
If you put your money in a CD @ 3% for 2018, you would have earned more than if you played the market.