Earlier in the month, we did a comparison for Bespoke Premium subscribers of the current market versus the declines in 1987 and 1998. Back then we highlighted how it was hard to make comparisons given the fact that in both periods, the market had a much stronger run leading up to the decline and valuations were more stretched.
Below we have updated the chart to see how the recent moves in the market have affected the degree of similarity, or lack thereof. Given the market's recent rally to within spitting distance of its Summer highs, the current period bears even less of a resemblance to those periods than it did earlier in the month. Although this does not mean the market can't trade lower, the chart pattern similarities with 1987 and 1998 are becoming even less compelling.
Comments