Do you remember the last time the indices dropped so forcefully? Perhaps not, and this creates the illusion that the market today is harsher than before.
In fact, things in the present always look worse than they are. Only in the last bullish market we have five other fixes, with an average recovery time up to the last peak of about 7 months.
"This period is extremely stressful," commented Michael Purves, chief strategist at Weeden & Co.
Since 2009, the average correction lasts 200 days, amounting to 14%, as far as SP500 is concerned. This means that if this week the index is able to close above the previous bottom, investors will have a good prospect of buying.
Concerns remain volatility. Looking back over time, statistics show that during the consolidation period, the SP500's price was up to 1% per day. For comparison nowadays 3% to 4% are a common occurrence.
Source: Bloomberg Pro Terminal
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.