25th October 2018 - Hippocrates' Sleeve: Retail Capitulation, Through The Lens Of Kahneman And Kübler-Ross

As it turns out, all three of the prior equity drawdowns have witnessed this retail capitulation pattern. The order of events normally looks something like this: A large, double-digit broad equity decline; Prompting an initial buy-the-dip reaction from retail investors (proxied in IVV and VOO); Followed by a period of false starts and increased market gyrations; Ultimately leading to a full-scale retail capitulation in equities.

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