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12 Year Market Lows are Rare

From the Cara Community Blog: "Thomas Lee, at JPMorgan writes: “Believe or not, retracing 12-year lows for the Dow is an incredibly rare event. Besides the retest of 1997 lows seen on Monday, this has only happened two other times, on April 8, 1932, and December 6, 1974.”

Given the rarity of the event, it is worth taking a closer look at the past instances: The 12 year low in 1932 was ~three months before the end of the bear market. In 1974, it was exactly the low for that bear market."

I thought that this chart was pretty telling. In the two worst bear markets of the 20th Century, hitting a 12 year low was a meaningful turning point. Maybe we can repeat those patterns.