Important Note 👇
From May to July 2007, European stock indices reached major peaks before the financial crisis.
However, this did not mean that the Nasdaq and S&P 500 indices had also peaked.
Despite a significant deterioration in the US economy, US stock indices continued to rise.
Funds flowed into the Nasdaq and S&P 500 indices.
From August to October 2007, the Nasdaq surged 25%, and the S&P 500 rose 15%.
People believed the US economy could withstand the impending economic crisis and that the Federal Reserve would intervene to support the stock market.
For a time, investors seemed to be correct. Until the end of 2007, the harsh reality of the US economy shocked the market.
Today, we are seeing the same situation (except that investors are about to enter a new phase, continuing to believe that the US economy will remain strong).
Watch closely!