Assumptions: - Taking into account 70s - Vertical line at the point where a recession start ( SPX500 start to retrace) and M2SL make new low
When Bottom: - Interest rate start to decline, it's imply easy to borrow money, the stock growth quickly - Inflation start to decline
In 2022 the market is in similar situation but not identical: - inflation may be at peak - Interest rate have to growth more due to prevision (strong economy and low unemployment), in the market there are to much liquidity printed in the last 2 year - high probable the interest continue to grow, to reduce the dollar supply and inflation.