NASDAQ DotCom Bubble
NASDAQ GFC
NASDAQ 2021-2023
Food for thought: Interesting looking into how the NADAQ sold off during the DotCom and GFC crash, after an initial sell-off there was a bound which was of a similar percentage. GFC fell -25% accompanied by a +23% rebound, and Dotcom fell -39%, accompanied by a +42% rebound.
Another interesting point — the capitulation sell-off after was -51% for GFC and -81%both double the initial fall and rebound, the final capitulation being longer than the initial sell-off.
Looking currently the sell-off was initially -37% and now A.I optimism pushed the rebound up +45%.
We are wary of current market froth (that this rebound being just a bear market rally) and would be on the side of caution, especially at current levels and prefer to be defensive and hold onto cash for a long and painful sell-off which has a high chance of eventuating.