Value Investing Have the Record Number of Investors in the Stock Market Lost Their Minds? |
- Have the Record Number of Investors in the Stock Market Lost Their Minds?
- RSI and S&P 500 Market Bottoms 1932-2020
- Buffett Dumps GS...Why?
| Have the Record Number of Investors in the Stock Market Lost Their Minds? Posted: 16 May 2020 11:11 AM PDT |
| RSI and S&P 500 Market Bottoms 1932-2020 Posted: 16 May 2020 01:48 PM PDT Looking at monthly RSI graph from 1932-2020, there is an interesting similarity in the S&P across different bear periods. Monthly RSI dipped below 30 during 4 periods--1932, 1974, 2002, 2008/09. 2-3 years prior to these lows, RSI reached levels of around 72 (1999) to 91 (1929). Granted, RSI reached above 70 in other years, but the bear markets were always preceded with these higher levels of RSI. In early 2018, RSI reached 88. During the sell-off in March 2020, RSI reached a low of 42. If one believes we are currently or headed into a bear market of any significance, then monthly RSI would need to drop to between 27 (2002 low) or 18 (20009 low) from its current value of 51 to reach a bottom. Assuming bear market conditions exist presently (or in the near future), it would seem there is significant downside ahead. Welcome to hear any thoughts and counter-arguments. No bear market? Does the unprecedented amount of Fed action make this time around different? Does the rapidity of the fall in March and bounce-back skew the monthly RSI results this year? [link] [comments]  |
| Posted: 16 May 2020 05:29 PM PDT Anyone have any ideas why Buffett suddenly cut his exposure to GS despite being very bullish in banks just a few weeks ago? Looking 2019 10-k and latest quarterly nothing really jumps out. What am I missing? [link] [comments]  |
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