During Every Market Crash There Are Big Ups, Big Downs And Giant Waves Of Momentum
This is exactly the type of market behavior that we
would expect to see during the early stages of a major financial
crisis. In every major market downturn throughout history there were
big ups, big downs and giant waves of momentum, and this time around
will not be any different. As I have explained repeatedly, markets tend
to go up when things are calm, and they tend to go down when things get
really choppy. During a market meltdown, we fully expect to see days
when the stock market absolutely soars. Waves of panic selling are
often followed by waves of panic buying. As you will see below, six of
the ten best single day gains for the Dow Jones Industrial Average
happened during the financial crisis of 2008 and 2009. So don’t be
fooled for a moment by a very positive day for stocks like we are seeing
on Tuesday. It is all part of the dance.
At one point on Tuesday, the Dow was up over 400 points, and many of
the talking heads on television were proclaiming that the stock market
had “recovered”. This is something that I predicted would happen yesterday…
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