Stocks in Germany, the UK, France, Italy, and Spain Plunge Below Year 2000 Levels: Buy-and-Hold Horror Shows | Wolf Street

Major European stock indices plunged below their bubble highs from over two decades ago. This is not to say that they plunged that much this week, but that they had finally risen past their prior bubble highs from over two decades ago, powered by money printing, and then they plunged.

This shows that for many big stock markets around the world, buy-and-hold only works if you buy low and hold till prices are high and then sell before they plunge again. So basic market timing. Otherwise you might be screwed for decades, or maybe for the rest of your life – the Nikkei is still down 33% from that bubble high in 1989. Once these mega-bubbles implode, stock markets may not see their old highs for decades. Food for thought.

Stocks in Germany, the UK, France, Italy, and Spain Plunge Below Year 2000 Levels: Buy-and-Hold Horror Shows | Wolf Street