This is a good article to serve as a reminder. At the risk of sounding old, with 23 years of experience in the financial industry, and it may seem corny, but I must admit “I’ve seen it all before”. 1998 Asian Financial Crisis, 2001 Sep 11, SARS in 2003, 2008 global financial crisis. The chart does look scary. It is the fastest 18% fall in history because we are in the age of automation and robots trading. ETFs are also causing this sell down as it indiscriminately liquidates stocks when investors sell. Below is the S&P500 ETF, SPY. 18% drop from 18 Feb to now, in 15 trading days. If you are very worried, stretch out your chart on a weekly basis, and over 5 years. It now looks like familiar territory? It is now resting on the 150 weeks moving average. On 24 Dec 18, it rested on the same moving average and shot up by over 25%. On 8 Feb 2016, it tested again and recovered 53%. Now does it look familiar? We have seen this happen twice previously in t...
Comments
Post a Comment