How often does a correction in the stock market turn into a recession?
Tuesday, March 24th, 2009
Matt Humberto asked:
I’m interested in “leveraged indexes” (ex., SSO) that imitate the general movement of the stock market with increased power. However, if the market plummets, I’m twice as in trouble as I’d normally be.
I’m interested in “leveraged indexes” (ex., SSO) that imitate the general movement of the stock market with increased power. However, if the market plummets, I’m twice as in trouble as I’d normally be.
I know that predicting the market is a difficult if not impossible task, but are there any early “warning signs” to warn me of an upcoming recession?
Historically, how many times have corrections (10% drop in the market) turned into a true, full-blown recession (20% drop or more in the market)?
Thanks for your help!
Correction: By “recession” I meant a bear market. Sorry for the confusion of terms.
Arlene
