DJI - God Help Us All... Welcome to the Great depression 2022
Dow Jones industrial average index has lost its February 2020 support. As this support did not hold i am convinced that the oldest US index has begun the great depression, not recession but depression. You can already see what fiat pairs with the USD are doing.
The run up was just phenomenal to say the least. We've been essentially parabolic since 2009, with the total run up since 1987 flash crash. Since then economy was on steroids.
The first sign of realism came with the dot.com bubble. It was especially hard on the S&P 500 index which lost more than 80% back then. Then came 2008 financial crisis which was seen predominant in the DJI. After that it was just up up up, sideways and up.
Covid dump just showed how laveraged this market is and sparked asset inflation on steroids. .... NOW ... Will see what happens.
DJI could still drop by 1k points, but not much lower for now as it is expected to go into a retracement first, if it doesn't go already. This retracement could drag out for year or two before continuation down. Where you might think?... below 2008 bottom is quite realistic, but for that it can take 10-30 years to play out. Again its a depression not recession, remember that. We are clearly not dropping like in the 1929-1932, therefore i think we will bleed slower.
Aftermath could be ... who knows... 20-30% of people out of job.... in 1930s there were around 25-30% of them on the streets.
During DJI retracement there could still be a rotation in the stock and crypto market, with little projects reaching new ATHs, but still lets not expect to much, and rather realize that the US economy has POPPED.
DISCLAMER:
I am not a financial advisor so non of this should be taken as a financial advise. Be well.
DJI
The run up was just phenomenal to say the least. We've been essentially parabolic since 2009, with the total run up since 1987 flash crash. Since then economy was on steroids.
The first sign of realism came with the dot.com bubble. It was especially hard on the S&P 500 index which lost more than 80% back then. Then came 2008 financial crisis which was seen predominant in the DJI. After that it was just up up up, sideways and up.
Covid dump just showed how laveraged this market is and sparked asset inflation on steroids. .... NOW ... Will see what happens.
DJI could still drop by 1k points, but not much lower for now as it is expected to go into a retracement first, if it doesn't go already. This retracement could drag out for year or two before continuation down. Where you might think?... below 2008 bottom is quite realistic, but for that it can take 10-30 years to play out. Again its a depression not recession, remember that. We are clearly not dropping like in the 1929-1932, therefore i think we will bleed slower.
Aftermath could be ... who knows... 20-30% of people out of job.... in 1930s there were around 25-30% of them on the streets.
During DJI retracement there could still be a rotation in the stock and crypto market, with little projects reaching new ATHs, but still lets not expect to much, and rather realize that the US economy has POPPED.
DISCLAMER:
I am not a financial advisor so non of this should be taken as a financial advise. Be well.
DJI
Clause de non-responsabilité
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