Tag Archives: market crash

Goldman Sachs reports their Global Economic Indicators (GLI) show the world has re-entered a contraction and...is predicting a market crash worse than that of the early 90′s recession and one slightly less than the sell-off at the turn of the millennium. [Below are graphs to support their contentions.] Words: 250

As investors become more and more worried about the world economy...it makes sense to us to look into stocks that held up best in periods of market decline. Managing risk is as important as reaching for return. One aspect of managing for risk is the past behavior of particular stocks in negative market periods. Toward that end, we identified four key, recent down periods for the S&P 500, and identified those liquid stocks that were in the top quartile for price return in each of those four periods, and did at least as well as the S&P 500 index in the 2008 crash period. [Take a look!] Words: 620

So far, the decline in the market has been fairly orderly; no panic, no hysteria to get out - even the VIX has remained calm [but] I wonder how much longer the decline will continue to be orderly. Frankly, there's something eerie about what's happening and, to be honest, what's happening is almost beyond analysis. I have nothing to compare it with....I really have to go on my intuition and instinct at this point - and my instinct is to get in cash.

The key concern for analyzing trading/investing opportunities for the rest of 2010 is whether we are facing a major pullback or 'crash back' to Autumn 2008 or March 2009 lows, or to see markets continue in their “risk on / risk off” pattern of the first quarter. Words: 516