Good morning, friends
This morning we are revealing 2 fascinating pieces of data about what's happening in the market!
This data provides an additional look at what has happened in the markets in recent weeks
In recent weeks, two extreme moves occurred, among the most unusual ever seen.
So what exactly happened and why should it interest you?
Here's the big picture:
1️⃣ The S&P 500 index rose by more than 19% in the last 27 trading days
This is one of the fastest and strongest comebacks in stock market history
But that's not what's really interesting
What's truly interesting is that when looking at the history of large and rapid short-term rallies, something amazing is discovered
Except for November-December 2008, all occurred at the beginning of a new bull market after a historical low in a bear market...
Definitely noteworthy
What happened historically afterwards?
Average return of +8% in three months
+22% within six months
+41% within one year
And up to +140% within five years!
Phenomenal and exceptional data!
2️⃣ The VIX volatility index experienced a 62% drop in the last six weeks
Note how unusual this is
This is the largest volatility collapse in stock market history
In the table you can see what happened in the market historically in such cases
Averages after such drops in the VIX:
+8.5% in six months
+20.6% within one year
+42.9% within two years
Will history repeat itself?