We Can't Dismiss This Rebound as a Reflex Action
Only the aftermath of the 1987 crash and the Lehman bankruptcy have seen bigger two-day gains since the war.
They understood the reflex.
Photographer: Hulton Archive/Archive Photos/Getty Images
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Every little thing the reflex does leaves you answered with a question mark, as someone once said. The last two days have seen an epic rebound for stock markets across the world. In the U.S., it has been the third-best such period since 1945 for the S&P 500, after the two-day rebounds that followed the Black Monday Crash of 1987, and the Lehman Brothers bankruptcy in 2008. That statistic makes clear why we should treat the last two days with caution; bounces on such a scale are only possible if the market has been dropped from a great height.