I’ve seen in mentioned that Q1 2022 was the same as Q1 2020 – – that is, a hard, fast selloff followed by a V-shaped recovery. Well, yes, I can certainly see the similarities. But I do want to point out one key difference by way of layered charts:
What I am referring to is the severity of the drop. You see, from peak to trough in 2022, we shed a mere 14%. In 2020, however, the drop was a delicious 36%, almost three times as much!
I do understand the parallel, however. It seems that, once again, right when things were looking good for the bears, it has been snatched away. My mood is eerily similar to how the VIX has tracked this year, and I’ve got to say, it isn’t easy to write about this stuff anymore. Honest.
