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The Remarkable DAX Declines.

  • Written by Syndicated Publisher 324 Comments324 Comments Comments
    September 12, 2011

    Today’s economic news from Europe was grim, as illustrated by this Reuters article featured at CNBC. The DAX was particularly hard hit, down 4.04% today and 31.06% from its interim high on May 2nd.

    Here is a closer look at the DAX since 2007. I’ve highlighted the all-time high and three remarkable DAX cliff dives since that peak. The start and end points for the declines are arbitrary — they are the boundaries of the steep declines.

     

    Here is a chart of the S&P 500 with the same three time frames highlighted.

     

    As we can see, the middle decline, which coincided with the most dramatic period of the Great Financial Crisis, bears the closest resemblance to the DAX equivalent. The current DAX cliff dive has not been mirrored by the S&P 500, which dropped sharply for the first nine sessions and then moved sideways in choppy volatility. Obviously the current focus of global financial stress is Europe. And Germany is suffering a market implosion of striking proportions.

    From Three Remarkable DAX Declines.

    Images: Flickr (licence attribution)

    About The Author

    My original dshort.com website was launched in February 2005 using a domain name based on my real name, Doug Short. I’m a formerly retired first wave boomer with a Ph.D. in English from Duke. Now my website has been acquired byAdvisor Perspectives, where I have been appointed the Vice President of Research.

    My first career was a faculty position at North Carolina State University, where I achieved the rank of Full Professor in 1983. During the early ’80s I got hooked on academic uses of microcomputers for research and instruction. In 1983, I co-directed the Sixth International Conference on Computers and the Humanities. An IBM executive who attended the conference made me a job offer I couldn’t refuse.

    Thus began my new career as a Higher Education Consultant for IBM — an ambassador for Information Technology to major universities around the country. After 12 years with Big Blue, I grew tired of the constant travel and left for a series of IT management positions in the Research Triangle area of North Carolina. I concluded my IT career managing the group responsible for email and research databases at GlaxoSmithKline until my retirement in 2006.

    Contrary to what many visitors assume based on my last name, I’m not a bearish short seller. It’s true that some of my content has been a bit pessimistic in recent years. But I believe this is a result of economic realities and not a personal bias. For the record, my efforts to educate others about bear markets date from November 2007, as this Motley Fool article attests.
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