October 3, 2018

Smallcap Index Cycles 2005-2018– Its darkest before Dawn.

A) The Craziest Smallcap Bull Market ever.

1) The 2005 correction

  • Down 24% in 5-6 weeks.
  • Recovered in 3 months so it was a swift recovery.


2) The 2005 upswing

  • 60% up in 6 months.
  • Optimism back.


3) The 2006 Correction – Fast and Furious

  • Down 43% in 5-6 weeks.
  • Even the Nifty was down 30% in those 6 weeks.
  • Margin Selling and everyone started losing faith and valuations were expensive. This is the time Sub-Prime crisis in US was at peak discussion.


4) Bull Market Recoveries are Fast  - 2006 Recovery

  • Recovered back to same highs of 2006 in 6-8 months.
  • Up 70%.
  • Suddenly the concerns went off and belief was back.


Read more at http://www.nooreshtech.co.in/2018/09/smallcap-index-cycles-2005-2018-its-darkest-before-dawn.html

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