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Prepare for two difficult months ahead if the 1999 developments repeat

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Tradehay.com: 04/01/2021 - 05:28

In the early 21st century tech bubble, the S&P 500 rose 18% from October 15 until its 1999 close at a record high.

The year 2000 opened with the stock market going higher briefly before plunging - and it fell more than 9% by the end of February 2020 before rebounding back to a new cyclical high at the end of March. .

In 2020, when overvaluation is reminding investors of the earlier era, the S&P 500 has risen 15% in the last two months of the year. The race for two seats to the Senate in Georgia, the new US administration and a worrying trend in the number of casesCovid-19 appears to be the catalyst for volatility in early 2021. But the amount of central bank cash is still being pumped into the system every month, making the current upturn appear unlikely to peak.

Mark Cudmore, Bloomberg

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