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.

Comments

Popular posts from this blog

French industry's competitiveness

Is the yield curve back to the 1950s-1960s?

Did street unrest damage the outlook for France?