THE SHORT BEAR
THE SHORT BEAR

@TheShortBear

4 Tweets Mar 23, 2023
50% of recessions see positive returns.
Only 1 out of 12 instances saw negative returns one year after the start of it.
50% of market corrections prior to the recession show positive returns when the recession starts.
A common rule of thumb is that two consecutive quarters of negative gross domestic product (GDP) growth represent a recession.
We technically were in a recession between q1 and q2 22.
SP500:
-4.6% Q1 22
-16.1% Q2 22
-4.9% Q3 22
Q3 2022 saw positive growth and we are forecasting a strong Q4 as well.
Looking at the 1y later row, we can see 11/12 instances had positive returns.
Should we see negative GDP growth during 2 quarters in 2023, the game will start again.
The interesting thing about the 2022 correction is that it comes right after 2000 and 2008.
These were historically the hardest corrections since 1930
To think a 50% correction is logical and normal is historical suicide.These are extremely rare and so are multiuser corrections

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