Investors marveling at the striking similarities of the bull market today to the one that ended in 1987 are hoping history doesn’t repeat itself.
If it does, the market could be in some serious trouble in 37 trading days. In 37 trading days, the ongoing bull market would be 1,311 trading days old, says Jim Paulsen of Wells Capital Management. That is a scary date because it was on the 1,311 trading day after the start of the 1982 bull market that the Standard & Poor’s 500 suffered its biggest one-day crash in history on Oct. 19, 1987. That crash snuffed out what had been a powerful market rally starting in 1982.
Normally these kinds of things are just market oddities. But investors are taking this one seriously since there are such strong similarities with the 1982 bull market and the one the market is currently in. For instance, the current bull run has marked a 175% rally from the low, which is where the 1982 bull was at this point in its run, Paulsen says.
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3 comments:
I believe there has been no real change since 2008. The economy hasn't recovered. If fact it has become worse. The stock market has been propped up by the government and the federal reserve. It in no way reflects what is going on out there for the man in the street. If it crashes, so what? I have little left now so there really is nothing to loose. The Stock market has been overdue for a correction for years.
Scare tactic
Mark my word, this cannot and will not happen.
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