Peak to Trough, Anatomy of a Market Correction
There are a lot of discussions about whether or not the 2022 corrections bottom is in.
This idea attempts to compare the 2022 bear market correction with 2008.
Peak to Trough, the 2008 GFC lasted 17 months.
The 2020 and 2022 corrections were both nearly identical in price, but recovery in 2020 was assisted with QE while 2022 face increased tightening.
The problem with comparing the 2 corrections is that 2008 was a crisis, and 2022 as of yet, is not.
The Great Financial Crisis (GFC) was plagued with bad Sub-Prime mortgages in Mortgage Backed Securities (MBS) and Collateralized Debt Obligations(CDO) that turned record profits into crushing losses for lenders.
In 2008, Bear Sterns was bought by JPMorgan for 2/share and the Lehman Brothers filed for bankruptcy of 620 Billion in Debt, 7% the size of the Fed Debt.
Zoom out and you see the 2022 Trough found support at the 10Yr Regression Trend from 2009-2019.
Is the bottom in?
Difficult to tell, hard the future is to see.
I'll update the chart when a turning point occurs or continue to reach for all time highs.
This idea attempts to compare the 2022 bear market correction with 2008.
Peak to Trough, the 2008 GFC lasted 17 months.
The 2020 and 2022 corrections were both nearly identical in price, but recovery in 2020 was assisted with QE while 2022 face increased tightening.
The problem with comparing the 2 corrections is that 2008 was a crisis, and 2022 as of yet, is not.
The Great Financial Crisis (GFC) was plagued with bad Sub-Prime mortgages in Mortgage Backed Securities (MBS) and Collateralized Debt Obligations(CDO) that turned record profits into crushing losses for lenders.
In 2008, Bear Sterns was bought by JPMorgan for 2/share and the Lehman Brothers filed for bankruptcy of 620 Billion in Debt, 7% the size of the Fed Debt.
Zoom out and you see the 2022 Trough found support at the 10Yr Regression Trend from 2009-2019.
Is the bottom in?
Difficult to tell, hard the future is to see.
I'll update the chart when a turning point occurs or continue to reach for all time highs.
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