The worst drops often come later!Don’t be fooled by the first crash… The worst drops often come later in a bear market.
Let’s break down the brutal truth about the 2008 GFC and what it teaches us today. 🧵
1.
In the 2007–2009 bear market, the S&P 500 had 7 failed rallies before finally bottoming.
Every bounce looked like the bottom — and every one was a trap.
👇
2.
The early drops were steep:
🔻 Down 11%
🔻 Down 17%
But the most violent crashes came after those…
Near the END — not the beginning — of the bear market.
3.
Later stage declines:
❌ Down 28%
❌ Down 36%
❌ Down 29%
That’s when capitulation kicked in.
Investors gave up. Fear took over.
4.
Capitulation volume isn’t a guaranteed bottom.
It feels like it’s over.
But if fundamentals haven’t turned and the trend isn’t broken, the bear can still bite — hard.
5.
Final crashes are like cliffs:
Markets are exhausted.
Hope is crushed.
And that’s finally when the real bottom shows up.
6.
The lesson?
Bear markets are full of traps.
Relief rallies can fool even seasoned pros.
Stay patient. Wait for trend confirmation. Don’t chase fake bottoms.
7.
📉 The biggest crashes usually happen at the end of the bear market.
That’s the final flush — and it sets the stage for true opportunity.
Learn from the past. Don’t get trapped. Stay sharp.
