2008 Shows Us Investors Will Panic Sell in April

“Unprecedented.”

I’m watching CNBC as I write, and I’ve heard that word dozens of time today.

The speed of the stock market’s decline is unprecedented.

The coronavirus is unprecedented.

The Federal Reserve’s actions are unprecedented.

Fortunately, everything isn’t unprecedented.

This is a bear market. There’s a precedent for that.

Investors have seen large losses before.

And the reaction of investors in the past tells us what to expect in this bear market.

Passive Investors Ignore the Market … Until They Don’t

Remember, millions of investors are passive.

They use index funds in 401(k)s. Many have financial advisers. They trust their advisers and rarely look at their accounts.

These investors ignore the stock market until they get quarterly statements.

As stocks fell in 2008, advisers were telling passive investors to buy the dip. And there was a brief rally each quarter.

When losses became too large, they sold.

The chart below shows how investors reacted to the bear market that ended in 2009.

Dashed vertical lines show the midpoint of the first month of the quarter. This is the time when less-active investors review their quarterly account statements.

As the chart shows, “too large” means a loss of more than 20%. This created the final panic in that bear market.

How Prices Reacted After Quarterly Statements in 2007–2009

This time will be the same.

Investors will get quarterly statements in April. Then the losses become real.

They will panic … and sell.

Your Action to Take

Now is the ideal time to wait.

Some investors don’t know how much money they’ve lost. They’ll act next month.

This means the current bear market is likely to last into April, at least.

Regards,

Michael Carr, CMT, CFTe

Editor, Peak Velocity Trader

Previous Post
Next Post

Comments

buy zithromax cheap

zithromax drug class https://zithromaxes.com/ citramax

storno brzinol

Pretty section of content. I just stumbled upon your web site and in accession capital to assert that I acquire in fact enjoyed account your blog posts. Anyway I will be subscribing to your feeds and even I achievement you access consistently fast.

twitch canlı yayın izlenme satın al

Ögrendigimiz iyi oldu 🙂

kardinal stick

812587 202613hello i discovered your post and thought it was extremely informational likewise i suggest this internet site about repairing lap tops Click Here 534083

how to write an essay for college admission

say thanks to a lot for your internet site it assists a lot. http://multiessay.com

tmnt sex games

Wow, beautiful portal. Thnx … https://winsexgames.com/

interactive sex games

You’re a really beneficial site; couldn’t make it
without ya! https://sexygamess.com/

keto cereal walmart

I adore this website – its so usefull and helpfull. https://ketogendiet.net/

free sex games no registration

You have got good information right. https://sex4games.com/

games of thrones khaleesi sex

Truly, this is a invaluable web page. https://sexgamesx.net/

keto friendly restaurants

Pretty revealing, looking ahead to coming back. https://ketogenicdiets.net/

keto diet for weight loss

Extremely individual pleasant site. Astounding information offered on few clicks. https://ketogenicdietinfo.com/

writing essay conclusion

Great website! It looks really expert! Maintain the helpful work! http://test.com

best vpn services 2022

You have got one of the better internet websites. https://windowsvpns.com/

persuasive essay thesis statement

Wow, beautiful website. Thnx … https://yoursuperessay.com/

business vpn router

Great internet site! It looks extremely professional!

Keep up the helpful job! https://vpnshroud.com/

perseverance and critical thinking

thank a lot for your website it aids a whole lot. https://criticalthinkingbasics.com/

buy usa vpn

Thanks really beneficial. Will certainly share website with my good
friends. https://choosevpn.net/

critical thinking and analysis

You have got good thing listed here. https://uncriticalthinking.com/

writing a 5 paragraph essay

Truly….this is a valuable webpage. https://topessayswriter.com/

write and essay

You’ve great stuff at this point. https://howtowriteessaytips.com/

free chat and web cam sites for bi and gay men

I adore this site – its so usefull and helpfull. https://gaypridee.com/

gay senior dating san antonio

most popular gay datinggay senior dating san antoniogay chubby chaser dating on line gay dating gay dating southwest florida

research essay outline

research essay hooks to start a essay no essay scholarships research essay outline

cabaret club online casino

I appreciate browsing your websites. With thanks! cabaret club online casino

gay nsa dating ratings

bear gay dating site best dating apps for gay gay mature men dating site in palm
springs california gay nsa dating ratings

slotmachinesworld.com

play free lucky 777 slots online slots free my vegas slots slotmachinesworld.com

Leave a Reply

Your email address will not be published.