{"id":11753,"date":"2015-09-03T06:05:01","date_gmt":"2015-09-03T11:05:01","guid":{"rendered":"http:\/\/olduvai.ca\/?p=11753"},"modified":"2015-09-03T06:05:01","modified_gmt":"2015-09-03T11:05:01","slug":"4-charts-show-why-this-rally-will-become-a-rout","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=11753","title":{"rendered":"4 Charts Show Why This Rally Will Become a Rout!"},"content":{"rendered":"

4 Charts Show Why This Rally Will Become a Rout!<\/a><\/h3>\n

There\u2019s a reason why I warn you to get out of a bubble a little early rather than a little late. It\u2019s because the first wave down tends to happen in a matter of a few weeks or months, sometimes days. It\u2019s fast and furious.<\/p>\n

I know this because I\u2019ve studied every major bubble in modern history \u2013 all the way back to the infamous\u00a0tulip bubble<\/a>\u00a0in 1637, when a single tulip cost more than most people made in a single year! And what I\u2019ve seen in each case, without exception, is that bubbles do not correct in nice stair steps when they\u2019re coming off their highs. They burst, crash, collapse, clatter, clang \u2013 however you want to say it!<\/p>\n

When the bubble deflates, it typically crashes 50% minimum to as high as 90%. But it\u2019s that first wave down that can wipe out\u00a020% to 50% right off the bat<\/a>!<\/p>\n

Below I have four charts that make the argument for me.<\/p>\n

They show the 1929 bubble burst\u2026 the 1987 crash\u2026 the 2000 \u201cTech Wreck\u201d\u2026 and the latest of 2015 from the Red Dragon itself \u2013 China\u2019s Tsunami.<\/p>\n

In each case, the fact that these bubbles were destined to burst\u00a0were only obvious\u00a0<\/em>to the few that weren\u2019t in denial. Most give into the bubble logic that new highs are the new norms. They think: \u201cThis time is different.\u201d It\u2019s not! It\u00a0never\u00a0<\/em>is.<\/p>\n

It\u2019s always hard to predict\u00a0exactly\u00a0<\/em>when bubbles will peak and crash. It\u2019s like dropping grains of sand on the floor. A mound will build up \u2013 becoming like a Hershey\u2019s kiss that grows more narrow at the top. At some point,\u00a0one<\/u>\u00a0grain of sand will cause the avalanche. Who knows which grain of sand that one will be!<\/p>\n

Here are those charts. Like I said, they speak for themselves!<\/p>\n

\"4<\/a><\/p>\n

What does that tell you!? EVERY bubble bursts. Bam, pow \u2013 no exceptions! So hopefully you understand why I keep harping on about this.<\/p>\n

 <\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

4 Charts Show Why This Rally Will Become a Rout! There\u2019s a reason why I warn you to get out of a bubble a little early rather than a little late. It\u2019s because the first wave down tends to happen in a matter of a few weeks or months, sometimes days. It\u2019s fast and furious. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1806,5979,1330,4726,500,4562],"class_list":["post-11753","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bubble","tag-contracorner","tag-denial","tag-harry-dent","tag-market-collapse","tag-stock-market-bubble"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11753","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11753"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11753\/revisions"}],"predecessor-version":[{"id":11754,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11753\/revisions\/11754"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11753"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11753"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11753"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}