On March 9th, 2009 the S&P 500 hit a low of 676.53 and, since that day, it has risen more than 200%. On only 2 other occasions within the last 100 years has the S&P 500 performed this well over a 6 year time frame. This has been great for investors but in both previous instances (1929 & 1999), the end result was utter disaster. Will it be different this time?
Excerpts from an article* by Michael Snyder (theeconomiccollapseblog.com) originally entitled Guess What Happened The Last Two Times The S&P 500 Was Up More Than 200% In Six Years?. [As can be seen in the chart below] what we are witnessing at this moment is classic “peaking behavior” and there is a long way to go down from here so, if historical patterns hold up, those with lots of money in the stock market could soon be in for a whole lot of trouble.
Markets tend to go down a lot faster than they go up so if your stock portfolio has gone up substantially over the past few years…but keep in mind that all of your gains can be wiped out very rapidly. Millions of people experienced this during the last financial crisis, and millions more will experience this during the next one.
…Many of the exact same patterns that we witnessed just prior to the last great stock market collapse are happening once again. [More examples are as follows:]
- …There has been only one other time over the past decade when we have seen the U.S. dollar surge in value in such a short period of time. That was in 2008, just prior to the last financial crisis…
- Since the middle of last year, the price of oil has fallen by more than 50 dollars a barrel. In all of history, that has happened only one other time, in 2008, just prior to the last financial crisis.
I could go on and on (margin debt, price/earnings ratios, industrial commodities, etc.) but…despite all of the warning signs there are still people out there that are eagerly pouring money into the stock market…and in the end they’ll get burned.
Let me be clear. The really, really, really dumb money is jumping into the stock market right now. Those that are pouring money into stocks today are really going to get hit hard when the crash comes – and it isn’t just me saying this.
The warning signs are [everywhere and very] clear. Soon the time for warning will be over and the crisis will be here. I hope that you are getting ready.
[The above article is presented by Lorimer Wilson, editor of www.munKNEE.com and has been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. This paragraph must be included in any article re-posting to avoid copyright infringement.]
*Original Source: http://theeconomiccollapseblog.com/archives/guess-what-happened-the-last-two-times-the-sp-500-was-up-more-than-200-in-six-years (Copyright © 2015 The Economic Collapse)
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