Loading ...$SPX Then and Now
The GFC Crash of 08 was a sharp 35% crash in a couple of weeks
Followed by great volitility as it retraced to the 38% Fibo 2 times before making new lows
Note the crash followed a down trend off the highs ..it was not from THE high
The Virus Crash of 20 was a similar sharp 35% crash in a couple of weeks
Followed by a rally so far PAST the 50% Fibo and seems capable of continuing.
Note : This crash was from the Very Top !
So the question is :
How Come this Crash looks to be so fleeting compared to the 08 Crash
Which of the two events feels Worse ?
THIS IS RIDICULOUS !!!
How Come this Crash looks to be so fleeting compared to the 08 Crash?
Two trillion reasons come to mind…
and counting…
2 trillion Fed + 2 trillion Fiscal,
And this is the first leg down, so bounce will be faster and steeper.
Any further leg down will take longer time.
If market goes lower than March low, Fed will buy stocks/ETFs.
Yep. All these comments are good. Its crowd psychology. Think about it.. in 2008.. how many times in the past and to what scale was there QE.. or bailouts? Other than playing with the levers of interest rates.. nobody expected to be saved.. hence the scary feeling of not having a safety net. 2008/09 changed that. Jumping 3 stories without a parachute is WSYYY scarier than 10k feet with a parachute.
Now.. if that parachute fails.. not simple broken bones… its death!
To me, it looks like the stock market, bond markets, interest rates, and metals prices have all been rigged from 2009 until 2020.
The U.S. President thinks it is his job to be a cheerleader for the U.S. stock market.
Also, the U.S. Treasury Secretary is a former hedge fund manager who previously worked for a major investment bank (Goldman Sachs) for 17 years.
Then you have the Fed intervening in markets in an attempt to keep everything afloat.
What could go wrong?
Yep. Looks super political.. take the emdicine now.. or later.. they chose later.
This article makes a good argument for the coming hyperinflation, which will start when the world gets back to work. How to prepare: buy REAL ASSETS-gold, silver, natural resources stocks, etc.
https://seekingalpha.com/article/4337913-how-much-money-fed-must-print-now-100-trillion
Top leveraged exchange traded funds that track the S&P500 Index:
https://www.investopedia.com/articles/etfs/top-leveraged-sp-500-etfs/
Note: This is NOT investment advice. Leveraged stock index funds have risk. In the long run, you will lose most or all of your money.