To understand the current charts better, I have decided to look back across the history of market crashes and study how the S&P500 index behaves. More specifically, I am looking at bear markets where the global economy entered into a recession. So I am not looking at those baby bears where it drops 20% and climbs back up after a few weeks. These are big bears.
1. 1973 – 1974 Stock Market CrashFrom 1973 to 1974, the stock market collapse due to the collapse of the Bretton Woods system and the 1973 oil crisis. This is the period where the monetary system underwent a paradigm shift.
The US dollar, which used to be pegged to the physical gold, was cut off by Richard Nixon in 1971. It is from then on when the US dollar became fiat currencies that were backed by nothing. The printing machines begin to go “Brrrrr” because of
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