Thoughts from our latest Longview on Friday were featured in Bloomberg Opinion this morning.
"Before all of this technical analysis begins to sound convincing, Longview Economics has an equally compelling counter-argument on why this is but a bear market bounce.
Upon analyzing 88 bear market rallies across seven major equity indices since 1996, the firm in a note Monday makes the case that in bear market rallies, the equity index gains by an average of 13%. Each relief rally, Longview notes, recoups an average of 65% of the prior decline — slightly higher than the 61.7% Fibonacci golden ratio retracement that is is often used to predict the size of corrective waves in equity markets — and also slightly higher than the current rally to date..."
Read the full article HERE