RockDalio

WORST CASE SCENARIO? Retest of 2020 highs!

SP:SPX   S&P 500 Index
If you go back to the 2008-2009 drawdown you can copy the pattern from that decline in earnest to the low at 666 and a subsequent multi-year move out of the low to new highs. The yellow shows what a compressed scenario would look like where we go back to 3400, spend a year retracing back up to 4700 and then create another powerful advance in the coming years. Think it's not possible then you've missed the reality of the swift 2020 decline and powerful rally that puts us at double from where we were in March 2020. Not financial advice - simply a look at other scenarios outside of the bull case for Santa Claus rally. Market headwinds on Fed policy are enormous; we need time to see what plays out, consolidate gains and get multiples back in line. Good luck!
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.