The 2007-2008 crash is the fastest ever
Since the top of October 2007, the Dow Jones is down by roughly 50%,
which makes this crash the 4th in magnitude since 1900, but it
happened in a much shorter period than the other ones. This is why I
beleive that the Market has anticipated most of the economical
slowdown. The economy
is likely to get worse continuously in the next 2-3 years (the result
of real-estate and credit crisis), but the stock market will follow a
different cycle. As it has anticipated faster than usual the slowdown,
it will also pick up the recovery faster. And boy, you don't want to
miss that! However, such a rally can only be triggered by hard proof
of things getting less worse, so in the meantime, we'll live in a time
of high volatility and uncertainty, which will provide opportunities
for short-term and active traders.
which makes this crash the 4th in magnitude since 1900, but it
happened in a much shorter period than the other ones. This is why I
beleive that the Market has anticipated most of the economical
slowdown. The economy
is likely to get worse continuously in the next 2-3 years (the result
of real-estate and credit crisis), but the stock market will follow a
different cycle. As it has anticipated faster than usual the slowdown,
it will also pick up the recovery faster. And boy, you don't want to
miss that! However, such a rally can only be triggered by hard proof
of things getting less worse, so in the meantime, we'll live in a time
of high volatility and uncertainty, which will provide opportunities
for short-term and active traders.
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