Fee-Only Financial Planning in North Carolina

Contact Us at: (919) 228-6312

Stock Market Crash 2007-2009

 

 

The 2007-2009 Crash 

Greedometer 7300

The Greedometer next climbed through 6500rpm in December 2006 and reached redline (7000rpm) in February 2007. A peak Greedometer reading of 7300 rpm was seen in late May – early June 2007.

The S&P500 dropped 57% from October 2007 through March 2009 and would have continued lower if it weren’t for QE1, bank bailouts, the AIG bailout, car company bailouts, and even more obscene levels of government overspending. Yet again, the fundamental flaws in the economy were not addressed. The cost of stemming the stock market and economic collapse was several $T added to our debt. The problem (debt) was made worse and the proverbial can was kicked down the road once again.

Greedometer sequence 2 (2007-2009)

 

The mini Greedometer captured the collapse with a tighter focus. It also show shows the impact of the Fed launching QE1, expanding QE1, and of the announcement banks won’t have to value assets at prices the market says.

mini Greedometer 2007 to 2009

Data from the two gauges combine to provide months advance warning, and insight into S&P500 interim inflection points.

Here is a video applying the mini Greedometer to the SPX crash of 2007-09.

 

Here is the 60-second TV ad I ran locally (Raleigh WRAL TV) in January 2009 -back when I ran (owned) Triangle Wealth Management (I sold it in 2017). The Greedometer algorithms (I only had 1 algorithm at the time) was the reason for the market call / ad.