2min chapter

The Compound and Friends cover image

What's Really Going On At Goldman Sachs?

The Compound and Friends

CHAPTER

The Dow Theory and the Bear Market

The average recovery time for bear markets without a recession is 290 days, no, I'm sorry, 210 days. So it's actually a little bit longer considering that this is a bear market without a recession. The theory is that if two stock market averages both make new highs at the same time, then they are confirming each other. And therefore the rally should have more staying power than if there's a negative divergence.

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