Hey mate, good video. I note you conduct a lot of comparison with the 2008/09 market crash, where there was a systemic problem with the market and the financial sector having a very bad relationship with debt.
I wonder if this is the best comparator. This drop was so acute and so sudden as you rightly point out, that it seems to resemble the 1987 crash where the market index got cut in half in a month. Illiquidity, algo trading, overvaluation are all attributed as causes and this is something that is in common with contemporary times.
It seemed like the huge and sudden decline was an instant release like a pressure valve releasing the build-up in values caused by the excesses of the 1980s after a downturn earlier that decade. And you can see that build-up in the chart, the market was clearly 'melting up', something you'd probably have to use your imagination a bit to say about our current market pre-crash.
Anyway mate, food for thought. Keep up the good work and happy trading.
DOMPET-CRUMPET
⋅
@Jemdrix, hey thanks. Im going to have a look at 80s crash. We just finished a decade bull run after the dotcom boom and crash, then followed by a real estate boom and crash in 08. fucking fascinating times. I also know fuck all lol, but am always on the search for truth.
As for the current crash about to take place, or takign place, i think its a big debt bubble and an inflated stock market in need of a correction. But bad timing with a virus that shuts down whole countries. its like being kicked when your down. cant wait for the us market to open to see how they react to 700bn stimulus and the negativity of a 0% interest rate. the UK didnt like it. AUS took it hard. This week is crazy man
Jemdrix
⋅
@DOMPET-CRUMPET, yeah agree with stock market needing a correction. I also have a theory that most of the big investors probably knew this and didn't want to waste a good crisis and drove prices through the floor just so they can pick them up cheap when they feel like putting in a bottom. We live in crazy times.
DOMPET-CRUMPET
⋅
@Jemdrix, yeah potentially. Like aus will do things to the economy t lower its doller value so our export of precious metal goes up. But the US is like the wild west of the western economy. Run by corporate too. Every country has its top gangsters, like the chines has their state gov. Russia has the oligarchs etc. manipulating their markets, and they are all trying to get rich, but the successful countries agree who is top dog, and will work together to play the long game.. and the new war these days is a financial war.
I wonder if this is the best comparator. This drop was so acute and so sudden as you rightly point out, that it seems to resemble the 1987 crash where the market index got cut in half in a month. Illiquidity, algo trading, overvaluation are all attributed as causes and this is something that is in common with contemporary times.
It seemed like the huge and sudden decline was an instant release like a pressure valve releasing the build-up in values caused by the excesses of the 1980s after a downturn earlier that decade. And you can see that build-up in the chart, the market was clearly 'melting up', something you'd probably have to use your imagination a bit to say about our current market pre-crash.
Anyway mate, food for thought. Keep up the good work and happy trading.