Don’t Buy The “Coronavirus Dip”…Yet
Why trying to time the market will screw you out of big money, every time
We all know about the Great Depression, right? It was started by the Stock Market Crash of October 1929…except that the crash didn’t actually happen in October of 1929.
At least, it didn’t if you were trying to time when the market “bounced” and began to recover.
As we can see from the above chart, the historically accepted date of October 1929 as the start of the crash is a little bit misleading. While it’s true that between the DJIA’s record-breaking (at the time) high of August 1929 (5,671.48) and the beginning of November 1929 (3,563.22) the Dow did shed nearly 50% of its value, the true bottom of the market wasn’t until almost three years later, when the market grounded out at a bleak and catastrophic 812.59 in June of 1932.
Nor is this the only example of economists, financiers, and the common citizen grossly underestimating the timing of a market correction, or “bounce.” during a recession.
Remember the Gas Wars of 1970? Can you picture the photos and videos of miles-long stretches of…
