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30% of the fastest sales in history

Simply a fully mind-blowing statistic from Financial institution of America Merrill Lynch technician Stephen Suttmeier…

The 2020 correction continues to make historical past, having already claimed the title of third quickest finish of a bull market courting again to 1928. In simply over 4 weeks for the reason that peak of February 19, 22 On buying and selling days, the S&P 500 (SPX) bought 30% on a every day closing foundation, making it the quickest 30% drop in historical past. To place this in historic context, the second, third and fourth quickest withdrawals have been the Nice Despair period fixes of 1934, 1931 and 1929, respectively. It’s not enterprise for 2020.

Here’s a desk:

It’s also the speedy transition from information to an unprecedented bear market:

Except for the Nice Despair and the World Struggle II period withdrawals, solely the decline in 1987 is approaching when it comes to pace and even then, February – March 200 got here produces nearly 42% quicker.

Josh right here – I advised my workers this morning, for the subsequent 1,three,5 years and even 10 years, each potential buyer will ask us "How did you do in 2020?" It will likely be the important thing benchmark for danger aversion in everybody's thoughts for a very long time. I do know this as a result of we received the difficulty from 2008 till the center of the subsequent decade.


Quickest 30% drop on the S&P 500 of all time
Financial institution of America Merrill Lynch – March 23, 2020

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