Double y-axes have their time and place, but too often they're the first, last, and only refuge of charlatans and cranks.
Experts almost always fall into the category of all talk but no action.
Exhibit A: The chart above that's been making the rounds again.
Well, you can make them look identical if you use devious enough y-axes.One wise point that, hussman himself made this week, however, is that even those who successfully predict crashes rarely get the timing right regardless of how history remembers them."And it may be terrific.".To continue reading this article you must be a Bloomberg Professional Service Subscriber.Instead, the Dow went the opposite way, rising to almost 3,800 by year-end.This call caused him to miss the turn and then underperform badly for the five years up to today."At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained.Cohen set an uberbullish 1,675 price target for the.Suppose, for example, that you had some stock prices from a historic boom and bust.At the moment, the market satisfies only one of these conditions.Their reasoning was that the bull market was trading too high and at a very fast pace, hence a strong correction was in order.Fundamentals boil down to pouring over standard data, and you are usually looking at what happened and not what will happen.American businessand consequently a basket of stocksis virtually certain to be worth far more in the years ahead.Whitney whiffs on munis.S P 500 for that fateful year, not foreseeing that the world was crumbling before her eyes.Simple, prudent money management skills will protect your profits and reduce your losses.
So all the fanfare over her market-calling ability almost seemed destined to end badly.
And finally, you compare those two percentage changes on a single y-axis.It has already caught some of these bullish experts by surprise as many threw the Towel early in the year.Instead, try to view stock market crashes as buying opportunities for until Fiat is eliminated build a lot 3 passport to europe keygen the markets will always trend upwards.Kadlec (yes, we know it's not 2020 yet, but seriously?It's just two lines that look nothing alike.Beware of fund managers bearing double y-axes.All you need is a small range for the small boom, and a big range for the big boomand voilà, you have a "pattern.".That assertion is the one made by the famous economist Irving Fisher, who observed, just after the first lurch of the crash, that "stock prices have reached what looks like a permanently high plateau.".These predictions have been off the mark for almost 10 years.
Markets dont crash when the masses are in disarray; they crash when the crowd is jumping up with Joy.