posted on Oct, 11 2018 @ 03:17 PM
a reply to: toysforadults
This downturn looks like it is following the "double top" trading pattern.
Technical trading patterns are based on tried and true market and gambling psychology.
We don't have the overhang of real estate mortgage default today that we had back in 2008, but we do have safe haven fixed income options that will
likely go to 4.5% yield.
Historically at least since the 70's worst case bear markets don't last more than 2 years before the indexes make new highs again.
Theoretically you could enjoy a worry free CD for 2 years and get a 3% yield instead of a dividend with an unknown price target.
The only thing for sure is that the money managers were able to choreograph a summer rally in stocks despite a 45% reduction of investment capital
from their customer base. That goes completely against common sense supply and demand but makes perfect sense with the right market psychology. Even
at the casinos gamblers typically don't cash out when they are ahead.
Dow close 25,052.83 -545.91 -2.13%
edit on 11-10-2018 by Cauliflower because: (no reason given)