Posted on 01/08/2016 1:45:20 PM PST by Citizen Zed
Back in 2007 and 2008, ironically the last time the Federal Reserve was hiking rates, the market began to form a bearish head and shoulders pattern. The pattern took a little less than a year to complete, and began breaking down heavily in early 2008.
The initial reaction lower in 2008 brought the market down by close to 15% in a matter of weeks, leading to a strong rebound higher from late January until May. In May, more selling pressure commenced, and when it was all said and done, the market had collapsed by nearly 55% from its 2007 highs to its 2009 lows. The point of this is that a bear market does not happen overnight, rather it can last many months or even years.
Looking at the current Dow Industrials chart, a topping pattern also looks to be developing. While we have not breached the August 2014 lows of 15,400, the market looks to be favoring selling currently. If we do get drastic spikes lower, pullbacks higher could be as much as 10% or more in some cases, but these are natural occurrences in a true bear market. The tide of the market is changing, and considering the geopolitical risks, as well as this being an election year in the U.S., investors could favor selling in the coming months.
(Excerpt) Read more at thestreet.com ...
Is this Obama’s first veto? It’s absurd that this was the first repeal of Obamacare to reach his desk from the do-nothing GOP House and Senate.
Sorry...wrong thread. Carry on, please.
Pfffft, I am not worried.
Obama’s recession wiped out my 401K so I don’t have anything in the market to lose.
Our economy fell down a large step in 2008. It has fallen down another step from that. The attempts to manage economic shrinkage to fit members of a socialist political push continue.
Same here. All I’ve got left is the cash stowed under my floorboards.
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