Stocks Began Falling Right At This Time Of The Year Just Prior To The Last Financial Crisis

Wednesday, May 27, 2015
By Paul Martin

By Michael Snyder
TheEconomicCollapseBlog.com
May 26th, 2015

Have you heard of the saying “sell in May and go away”? Traditionally, the period from May through October has been a time of weakness for stocks. In fact, on average stocks hit their lowest point of the year on October 27th. And most people don’t remember this, but the Dow Jones Industrial Average actually began plunging right at this time of the year just prior to the financial crisis of 2008. Most people do remember the huge stock crash that happened in the fall of that year, but the market actually started to slide in May. Throughout the first four and a half months of 2008, stocks moved up and down in a fairly narrow range, and the Dow closed at a short-term peak of 13,028.16 on May 19th. From there it was all downhill for the rest of the year. So will a similar thing happen in 2015 as we approach the next great financial crisis? Since March 20th, the Dow Jones Transportation Average has already fallen by almost 800 points. So will the Dow Jones Industrial Average soon follow? Well, only time will tell, but the Dow was down 190 points on Tuesday. Signs of trouble are popping up all over the place, and the “smart money” is getting out while the getting is good.

The chart that I have posted below shows how the Dow Jones Industrial Average performed during 2008. As you can see, stocks began plummeting long before the financial crisis in the fall. From May 19th through early July, the Dow fell by about 2,000 points. Should we expect to see a similar pattern this summer?…

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