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Monday, March 9, 2009

1929 bear market

Everywhere you turn, the current bear market is being compared to the one that started back in 1929. The percentage decline was 89.2% from top to bottom, and it lasted 714 days. Ouch!

2007 Current Bear

Peak Dow = 14,198.10 .......... date peaked =11 oct 2007
Peak S&P500 = 1,576.09 ......date peaked = 11 oct 2007

When will current bear bottom?

If current bear lasts 714 days it will be 26/09/2009 (714 days from 11 oct 2007)

What will be the Dow when it drops 89.2% from 14,198.10?
It will be 1,533.40

Time frame of current bear

11 oct 2007 ==> day 1 11 oct 2008 ====> 365 days

11 oct 2008 to 31 dec 2008 ====> 81 days

1 jan 2009 to 20 Apr 2009 (today) ====>110 days

Number of days into current bear ====> 556 days

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