Late in 2007 my firm “Strategic Management Advisors” released a note on the overhang of credit, default, swaps, and potential impact on mortgages and the home buying public.
Six months later, the Great Recession of 2008 began.
Last week S&P advanced within one percent of a new 52-week high. Breadth showed new lows outnumbering new highs.
This rare divergence happened only twice in history. The last was December 1999.
The following year was the Dot Com Bubble meltdown.
The other day in history, when the market rallied within one percent of new highs and breadth of the market, measured in advances and declines fell to new lows, was July 23, 1929.
That October markets crashed, causing the Great Depression.
SMA Institute, Challenging Economic Injustice
Kevin j Palmer
rebel/writer/producer/poet