Remember the bear market during the financial crisis? I sure do.
May I present to you my latest creation in Layered Charts, which shows the “GFC” (red line) and the present day (blue line). For what it’s worth:
As long as we’re walking down memory lane, do you remember Burma Shave ads? Well, no, probably not, because I think they were a thing of the 1940s. But I bet some of you at least know what they were: sequences of signs along the road that spelled out a little message (usually as a simple poem), completed by the words Burma Shave.
I’d like to offer you something similar right now, anchored by up-to-date index charts, even if it isn’t a poem (but, as Norm would say, more of a comment, really):
My point is that not only are we in a bear market, but that this is the best environment for trading shorts since 2008.
But wait, Tim, what about the Covid crash? What about that bear market?
Oh, you mean THIS piece of crap?
Umm, that was NOT a bear market. Yes, stocks went down more than 20%, but that silly, empty-headed definition is not a “bear market” to me.
What happened in late February and early March 2020 was a VERY brief, VERY sudden drop that was largely confined to about FIVE DAYS of meaningful drops. It was NOT a bear market. It was simply a market that went down really fast, and did so in such a violent way (counter-acted even more violently by trillions of dollars of “help” in mid-March) that soon rendered it meaningless.
A bear market, to me, grinds on for month after month after month, until such time (maybe in a year or two) that /WSB is a ghost town and a bunch of 21 year olds have filed for bankruptcy.
2020 wasn’t a bear market.
This is.
