The black swan is the Covid-19. The uncertainty caused by this deadly virus has become a pandemic.
No one is sure when this problem will blow over.
However, every crisis is also opening the door of opportunity.
This is because bad time will not last forever. If we buy stocks near the bottom and hold it till full recovery profit can be yours.
To guess when is near the market bottom it will be helpful to look at the past bear markets.
Every stock market crash is different in both cause and reaction:
1973/4 Oil Crisis: Lost 35%, Crash Duration 700 Days, Full Recovery 7 Years
1987 Black Friday: Lost 35%, Crash Duration 61 Days, Full Recovery 2 Years
2000 Dotcom Crash: Lost 49%, Crash Duration 944 Days, Full Recovery 7 Years
2007 Credit Crisis: Lost 58%, Crash Duration 485 Days, Full Recovery 7 Years
2020 Corona Crash: Lost 33%, Duration So Far 28 Days, Full Recovery uncertain
2020 Corona Crash is on 28 Days old ( as at 23rd March 2020).
Shortest Crash Duration is 61 days and the longest is 2010 days.
There will be dead cat bounce and if we are not careful our cash will dry up before it reaches the bottom.
Be careful and be patient.
