Posted on 06/28/2016 4:27:45 AM PDT by expat_panama
How long will the Brexit meltdown continue? How far will the market fall?
It's impossible to say for sure, of course. But if history is any guide, then you should expect about a month of market weakness and nearly an 11% decline before the next upturn.
WPERS_01_062716This could help guide any post-Brexit investment moves you're weighing.
Friday's 3.6% tumble in the market -- measured by the S&P 500 -- jibed closely with the 3.5% average first-day market decline sparked by all sorts of shocking stock market news since World War II. That includes bombings and assassinations, according to a Monday morning report by Sam Stovall, U.S. equity strategist for S&P Global Market Intelligence.
How much worse will things get? The S&P 500 lost 1.8% Monday. Historically, the market fell a total of 10.3% on average during the first 32 days after a notably jarring event. Capture short term gains with SwingTrader! Try us free for 14 days.
On average, it took the market 113 days after the 32-day downturn to rally back to its initial pre-shock level. Many experts caution mutual fund investors against going to cash precisely because it is impossible to know for sure when the next rally will begin.
Meanwhile, how badly was Wall Street walloped on Friday's compared to other first-day market meltdowns since World War II? Of the 20 postwar events analyzed by Stovall, Friday's 3.6% Brexit breakdown ranked number seven.
Its first-day market impact was smaller than the next deepest dive, which was a 4.4% decline after the Japanese attack on Pearl Harbor that drew the U.S. into World War II.
The worst single-day decline was the 20.5% plunge that marked the Crash of 1987 on Oct. 19 of that year.
(Excerpt) Read more at investors.com ...
Yes, this.
My stock is up. The list of about 15 stocks I look at have the majority up today. They all were down for several days prior to the BREXIT vote and a few days after. The stock traders are just manipulating the market again.
And the media are hyping the “turmoil” for all the publicity they can. Nothing has changed for us, and little has changed in Europe.
TC
Major indexes are back up to where they were last Friday. Trade volume seems to go up w/ prices, bullish sign...
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