After the bubble - what happens next?

Wall Street's performance since 2000 continues to track past bubbles with remarkable precision. Indeed, there seems to be a clearly defined schedule of events after bubbles in general. I first wrote about this to clients in July 2000 and followed it up in the July 2002 issue of International Investment. In the first report, I analysed the close similarities between this bubble and the performance of international stock markets in 25 previous bubbles. This suggested that the most likely outcome would be: • A knee-jerk rally will follow the initial crash. This may last a few months but on...