People are saying the stock market is in “uncharted” territory these days. That isn’t exactly the truth. Take a look at this chart from dshort.com:
The last 3 major bear markets all dropped from 48% to 89%. Add in our current market and one will see that we are at, roughly 51% as of 11/21/08.
On another note, the stock market, and the performance of the market, was not the cause of the Great Depression, nor is it the reason our economy is in the current place it is. I simply want to point that out as I’ve heard three stories within the last 48 hours that implied such a correlation.
I will have more on the bear market later today…. if you are a true fan of history, you know what I am researching… but if you do not have a background in history / finance… the “Great Depression” you think of that around the crash of 1929… yea, that wasn’t the “Great Depression”. I’ll show you the 1st Great Depression and let the echoes of the past haunt you as you come to realize the largest depression could be happening all over.
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