By Ian Mathias
08/28/09 Baltimore, Maryland
This time last week, we began with a typical bar stool question: Where’s the market headed? Since stocks have been intent on going nowhere (the S&P has piddled forward to a 0.5% gain so far this week), we’ll turn that query on its head today:
Where’s the market been?
The answer is that the market’s caught up in one of the biggest bear market rallies in American history. See for yourself:
The current bear market rally is longer in duration than any Depression-era rebound, and is second only in magnitude to the initial crash snapback in 1929.
Bill Bonner suggested yesterday that we are “at the beginning of a long period of adjustment — a depression.” Hmmm… And the current stock rebound looks a lot like the rally of 1929, during the very early stages of the Great Depression. So if history is to repeat, that would put us:
Ian Mathias is managing editor of The 5 Min. Forecast. We discovered Ian working as a full time rock climbing guide and writing on the side. As it turns out, markets and global economics can be extreme too… at least enough to keep him around. Since working for Agora Financial, respected media outlets including Forbes.com, the Associated Press, Yahoo, and MSN Money have syndicated his writing. He received his BA from Loyola College in Maryland and is currently studying writing at the graduate level.
Special Report: From Hulbert’s No 1-Ranked Advisory Letter Over 5 Years, GOLD $2000 REPORT : Five entirely new ways to play the gold trend and a hidden way to snap up gold- for less than one penny per ounce!
View articles by Ian Mathias
The articles and commentary featured on the
Daily Reckoning are presented by
Agora Financial. Additional market commentary is available through
The 5Min Forecast . Follow the
Daily Reckoning on
Twitter and
Facebook .
Sign Up for The Daily Reckoning e-letter and receive a chapter from the new Financial Reckoning Day... FREE!
We Will Not Share Your Email.
We Value Your Privacy.
Related Articles:
don’t count out that crazy fed “stimulus”, bailout, and backstop money making its way into the stock market….this levitation / bear rally could go on for quite some time…
My target for the peak of this rebound was about 9940 on the DOW, but I read another piece that was well written that stated they thought 10,300 on the DOW was the peak before the correction. Regardless I think there is a little more leg room to run before this runs out of “enthusiasm”. I was premature jumping into short positions and have been taking a beating, but have some powder dry to add to my positions as this gets a little closer to my targets.
I agree with the other poster regarding the stimulus and bailouts being an unknown factor. However I would like to add that it looks like China and others who have been buyers of our debt are pushing away from the table and the Fed is having to indirectly bid up treasuries at the auctions so it would appear that the music could stop sooner than we think if this information becomes public via the Bloomberg lawsuit or via the actions to Audit the Fed.