Oh, sorry to get you worked up earlier about the “death cross” in the S&P 500. Turns out, the crossing of the 50-day moving average below the 200-day moving average doesn’t necessarily signal the end of the world.
Via PragCap, here’s Pierre Lapoint of Brockhouse Cooper:
“The death cross IS nonsense. They’re no better than a flip of a coin to predict future returns. Check out these odds: Since 1970, only 10 of the 21 occurrences actually resulted in a market pullback a month after the death cross. Three months later, the market was down only 43% of the time. With odds like this, don’t short the market. Go to a casino — you’ll have more fun.”
Business Insider Emails & Alerts
Site highlights each day to your inbox.