The Bespoke Report — 3/9/18
Nine years ago today, the US stock market bottomed after a crash of more than 50% from its 2007 highs. In hindsight, it’s quite easy to think of a 50%+ decline as a great buying opportunity, because that’s the name of the game, right? “Buy low, sell high.” In reality, though, emotions run highest when financial pain is at its greatest, and that’s why instead of going out and buying when there’s “blood in the streets,” most investors were still in liquidation mode at the lows, giving up on their holdings because they just couldn’t take it any more.
The headlines certainly weren’t helping. Below is the cover of the WSJ on March 3rd, 2009, less than a week from the ultimate lows. It certainly didn’t paint an optimistic picture. In reality, stepping in and buying at this point would have given investors the best entry points they’ll probably ever see in their lives.
We’ve been writing our weekly Bespoke Report newsletter for the last ten years, and for a trip down memory lane, today we want to share with you our Bespoke Report from March 9th, 2009 (the day of the Financial Crisis low). CLICK HERE TO VIEW. While we wouldn’t give ourselves full credit for “calling the bottom,” we did carefully make note of a few different indicators that were starting to turn bullish at the time.
Times are of course quite different nine years removed from one of the worst bear markets on record. But that doesn’t mean investors should get complacent. Remember, every new all-time high could end up being the start of a new bear market.
We continue to publish our weekly Bespoke Report newsletter, and it has grown into one of the most popular pieces of research on the street. If you’d like to read this week’s Bespoke Report, simply click the button below to start a two-week free trial to any one of our three premium membership levels. Have a great weekend!
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Here’s a cool table from this week’s Bespoke Report. A little over a week ago, the S&P 500 closed down 10.1% from its all-time record high only nine trading days earlier. That confirmed the first official correction for the index in what seemed like forever. Just like that, though, equities have come roaring back and have now closed higher for six straight trading days heading into this weekend. With that streak, we wondered if the S&P 500 had ever seen a similar six-day winning streak from the closing low of a 10% correction. Looking back at prior corrections, we were surprised to see that there have actually been eight prior periods where the S&P 500 saw a similar streak from a closing low. In this week’s Bespoke Report, we examined each of these periods to see how the S&P 500 performed going forward after the initial six-day gain off of the low.
To see how the market performed following these prior periods, click the button below to start a trial and read our popular Bespoke Report newsletter.
