31 December 2016
Stock Market’s 10-Year Cycle. 1987, 1997, 2007…2017
Oct 1987 Black Monday – Dow Jones dropped 22.6% in a day; HK dropped 45.5% in Oct 1987
Oct 1997 Asia Financial Crisis – Thai market dropped 75% for the year, Indonesia lost 13.5% of its GDP; S. Korea bailed out by IMF; Hang Seng dropped 23% in 4 days.
Oct 2007 US Subprime Crisis – Memories are still fresh…Citibank traded below US$1.0, Bank of America at US$2.50. STI dropped over 60% for the period Oct 07 to Oct 08.
Oct 2017 – What will we witness 10 months from now? Will history repeat itself? Sell everything before Oct 2017? Given the ‘high’ probability of the markets following the 10-year cycle, do we even participate in the markets?
Oct 1997 Asia Financial Crisis – Thai market dropped 75% for the year, Indonesia lost 13.5% of its GDP; S. Korea bailed out by IMF; Hang Seng dropped 23% in 4 days.
Oct 2007 US Subprime Crisis – Memories are still fresh…Citibank traded below US$1.0, Bank of America at US$2.50. STI dropped over 60% for the period Oct 07 to Oct 08.
Oct 2017 – What will we witness 10 months from now? Will history repeat itself? Sell everything before Oct 2017? Given the ‘high’ probability of the markets following the 10-year cycle, do we even participate in the markets?
Labels: Historical Teachings, History
