CNBC: “Afraid to buy into this market? A key 2008 financial-crisis moment isn’t reassuring”
By admin_45 in IN THE NEWS
Excerpt from CNBC quoting DataTrek's Nick Colas:
.... "Another important point: The financial crisis and Lehman bankruptcy occurred right near a presidential election, according to Nicholas Colas, co-founder of DataTrek Research, who has been studying the relationship between 2008 and today for trading intelligence.
“There was a U.S. general election on Nov. 4 [2008], which is smack in the middle of this time series. The S&P 500 dropped 5% in each of the next two days after, because it was clear that we had to wait months for fiscal stimulus since D.C. had no mandate. That’s really what made the November lows. And why the ultimate low was in March 2009.”
While Republicans and Democrats were sparring over another round of stimulus this week, “that’s the big difference: D.C. owns the current crisis and has therefore responded much more quickly,” Colas said"....
Read the full analysis here on CNBC!
