Why did S&P 500 recover $\ge 50\%$ before it nose-dived in 1929, 1987, 2008?

This question needs details or clarity.

Fizz commented and corrected me, so Fizz understood my question? What "details" or "clarity" would you like?


I can't answer for the other users. My feeling as to why this question was closed is that it would end up being too speculative and/or broad.

You are basically asking for users to speculate over the movement of the entire S&P 500, and it's not clear exactly what you are looking for. Your question asks specifically, "Can economics explain them [the charts]?" What part of economics are you looking to for an explanation?

Are you asking if some generic asset pricing model that tries to predict the up and down movements of a given stock index? Are you asking if behavioral models for asset bubbles are part of the reason for the "dead cat bounce"? Are you asking for us to analyze employment, monetary policy, or any other number of factors that could have caused a temporary uptick in the index price before coming back down? Are you asking for us to compare these particular years that you picked out (1929, 1987, 2008) to other recession years where maybe this sort of pattern did not hold?

I could go on. The point is--especially with macroeconomic questions--you have to have a well-defined, answerable question. It's not enough for users to understand what you are currently asking. Simply asking basically, "what does ' ' ' ' 'economics' ' ' ' ' have to say about this particular phenomena which I see a pattern in for some years" is not a well defined question for this site.

For better or for worse, this site is not like a forum where through discussion we can mold or shape a concrete question for you. If you have a topic of interest, treat asking questions about it almost like a research question. Narrow the scope down to something manageable. As is, there's plenty of directions someone could take your very broad question to try to explain this price movement. But the question is what are you looking at?

It may be a tall order to ask this of newer students or laypeople. I think sometimes the community will overlook some lack of clarity for idiosyncratic reasons for their sake. But generally speaking, the community tends to want more effort than, "here is an observation that may or may not be a regular pattern, can someone explain it to me". Do not take this personally. I think your question could probably be salvaged into something quite engaging. It just needs some more focus.


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