Doug Short has produced a new market chart. This one aligns the four big bear markets from the bottom of their first major collapse…and then charts their recoveries off the lows.
Bulls and bears alike will be glad to know… we just beat the rally at the end of 1929!
That is to say: Our recovery off the bottom has just surpassed the violent rally from the end of 1929 to the spring of 1930–the one that convinced everyone in that era that the crash was done and it was off to the races again.
Notably, that rally lasted almost exactly as long as the one we’ve just had: 5 months. Then it failed. Two years later, the market finally bottomed down almost 90% from the peak (and 70% or so from the interim peak).
Keeping our fingers crossed…
Here’s a larger version at dshort.com >
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