1929, 2008 and, now, 2020.
We’ve only seen this level of “selling pressure” three times since 1900. A limited sample size, sure, but we’re in ominous company. Anything and everything has been dumped in a panic liquidation to raise cash.
We saw a similar “global margin call” in late 2008. A year’s worth of selling crescendoed into a financial crisis grand finale that would eventually conclude in March 2009.
The good news then? If you held tight or, better yet, bought through the panic, you eventually did quite well. Let’s take the worst day of that year. On October 15, 2008, the S&P 500 slid 9% in one day.… Read more