Many Stock Market indexes have now rebounded approximately 20% from their lows. Now market spectators are divided- some say this is a technical rebound and the bottom has not arrived; while another group says the Monday close was the bottom and we are out of the woods.
I will weigh in my thoughts on market bottoms, based on what I observed of the GFC 2008-2009
GFC 2008-2009 Bottom – 2 Bankruptcies in 2 Industries
There were two events that triggered US markets to crash each time. I will be basing on the Dow Jones Index Performance as a reference.
The first was the collapse of Lehman in late Sept 2008. This resulted in the Dow crashing from its 11,000 point level. The crash happened for a period of market days and the Dow only stated to range bound when TARP was officially implemented in Oct 2008. The Dow remained at the 7000-8000 levels for