Like i said the rally has been much much more amazing than the decline was
- Thread starter hafez50
- Start date
The point is recoveries practically always take longer than corrections. That's been true throughout market history. There may be a few exceptions with 5-10% corrections (I believe Oct. 2014 was a case), but all bigger corrections/crashes take time to recover. SunTrader/Destitute (if they aren't the same person then my apologies, SunTrader) acted like this recovery was meaningless because the market didn't rise as fast as it crashed in March. It NEVER DOES. That sort of thing is important to know and is worth comparing to the past...at least if you want to make money.
There haven't been all that many 30% drops in the history of American equities, also considering trading started 150+ years ago.
Correct yea 3 not 6 months.
With this I agree. But dunno about how long recovery will take. Nobody knows, if somebody says like Obama former advisor it’s completely pos. Will be interesting time till eoy.
One thing I’m sure we will recover.
Right, the sample size is small but there were quite a few during the Great Depression and five (including this one) since 1970. If we extend it to say 15% corrections, I'm pretty sure the pattern holds. Corrections are faster than recoveries, sometimes by months, sometimes by many years.
One thing is for sure--regardless of the administration, we're fighting every correction with more and more gasoline (lit by fire) now. We've gone from the occasional Greenspan Put to everything under the kitchen sink in 2008 (ZIRP, QE infinity, TARP, end of marked-to-market accounting, etc.) and another massive response to COVID. Not sure what all the unintended consequences will be, but cycles and volatility will both be exaggerated I'm pretty sure.
No argument there. My original point was about the cheerleaders. Not that it was taking longer for this mostly sideways recovery which may make new ATH's at some point soon to take place.
Name a correction after a 30% drop where we've dumped as many trillions of dollars as quickly to prop it?