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Thursday, November 6, 2008

Asian SARS vs American SARS

In 2003, we had the Asian SARS which affected Asia, then spread to the rest of the world.

Now, we have the American SARS"Severe American Recession Syndrome”

Oops, this term is taken from Daryl Guppy's article posted on CNBC Website. He wrote:

"We use the monthly S&P 500 chart to measure the temperature and track the recovery.” It might take 1 -2 years to recover.

"Market always fall more rapidly than they rise, simply because you do not need money to be able to lose money. The rebound from the recession target at 800 will be slow because new money is required to fuel a new uptrend. Any rebound from the depression targets will be difficult because the quantum of wealth destruction requires a new generation to develop new wealth before money is available for a new bull market.”

Refer to Chart Patterns and Time for chart of S&P 500 and depression targets.



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