Yahoo Finance: “The S&P 500 is currently mirroring 2009-2010 to a ‘creepy’ degree: veteran hedge funder”By admin_45 in IN THE NEWS
Excerpt from Yahoo Finance quoting DataTrek's Nick Colas:
.... "In the middle of March 2020, as the stock market collided with the pandemic and sank more than 30%, former hedge funder and DataTrek Research co-founder Nicholas Colas wrote that he had seen this before.
“So far, this is exactly October 2008,” he wrote at the time. With that in mind, DataTrek, an investment research firm, devoted a lot of its newsletter to the crisis playbook that involved buying the daily 5% drops when they came. Throughout, it proved to be an effective strategy — probably more effective than anyone would have thought — and the market returned to all-time highs by August.
Almost a year later and the similarities have not let up. In the firm’s newsletter this week, Colas pointed out that the "2009 playbook" is "still working even as we go deeper into 2021.”
Following the Financial Crisis, 219 days after the 2009 lows, the index was up 70%. Feb. 3 marked 219 trading days after the lows in March, and the S&P 500 was up 71%"....
Read the full article here on Yahoo Finance!