No. of Recommendations: 11
"Bull markets climb a wall of worry."
..........
You have plenty of time to get out of a true bear market.
PLENTY OF TIME
Ahh, all those sayings, one for every opportunity and each oneīs taste. Like "Bull markets donīt die with a roar, they die on a whimper" (or similar, canīt remember). In line with Jimīs "You have a lot of time to get out ... 3 months later avarage/usually -10%" (or similar).
But does this apply to Maniaīs?
Nasdaq, Feb 2000: 4700
Nasdaq, May 2000: 3400 => 3 months later -30% !
What followed? Big recovery = "Thank God. The carnage is over!".
Hmm, not exactly:
Nasdaq, Aug 2000: 4200
Nasdaq, Nov 2000: 2500 => 2 months later -40%
Nasdaq, Mar 2001: 1850 => 4 months later another -25%
The mania did not die not on a whimper. It was a huge unstable mountain range that crumbled within a short time, with a huge roar. When would (IF!) you have left the mountain?
