Carlsquare weekly market letter: Are we back to 1929 or 2008?
22 Mar 2023
Read the weekly letter here:
Carlsquare Weekly market letter
- History does not repeat itself, but it often rhymes (Mark Twain). Will the market have another 1929-style crash, or should we be looking at a 2008-style rally?
- The future is in the hands of the Fed, and today’s meeting could be a game changer for the entire market. Will the Fed loosen its grip on interest rates to prevent another financial crisis? That would trigger a market rally.
- Usually, the Fed tries to push the market higher, but this time they may feel obliged to stick to the script to avoid losing control of inflation. Then we need to look at the script of the 1929 stock market crash and the Great Recession
- The chart below shows the first part of the stock market downturn from 1929 to 1932.
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