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Ben Carlson: What Happens Next After Stocks Are Up Big?
FYI: Michael, Josh and I were having a discussion a couple of weeks ago about what happens next in the stock market. Obviously, we don’t know what happens next, but we were curious about what history says about what happens to the stock market after experiencing huge gains in the first three-quarters of the year or so.
There are probably two camps of investors who assume they know what’s going to happen next. The first assumes momentum will keep things going while the second assumes the bigger the gains, the bigger the ensuing crash.
