According to my analysis, the fall in the Dow Jones and Nasdaq, which was to be completed, Bz as per my analysis , I see the chart of dow jones index it will indicate to me the down fall is complete now and market move to upward within few day . I tell the reason in year of 2008 market will crash and it is a financial crisis and also called the Lehman Brothers crisis and so many reason to carry the market down . In year of 2009 the market will recover and Dow Jones index will also clime and is rally will extant to the year of 2011 March and market are retrace In the month of April, the market started retrace again as the market was seeing that the inflation rate was increasing very fast. Due to this, the market again saw a fall which was 13% down move .
Talking about this time, the sim is going on in the market because the crisis that came in the corona period and then the recovery that has been seen in the market after that and now after this recovery is visible to everyone. That's seeing the price of commodities price going up. Because of that, the risk of inflation is increasing and the market is seeing a decline and let's talk now. So far, the market has seen a decline of 13% from its High .
Which are the reason due to which the market crash came in the year 2011 Reason 1 - Inflation
Inflation is the first reason to drags the market . If we seen the date of inflation in 2009 the inflation is -0.40% in 2010 1.6% and 2011 it go to peak 3.2% . And the commodities price of oil and gas go to 2008 may level . If we talk about our interest rate, then the interest rate was less than inflation and the inflation rate was increasing to such an extent, due to which the Federal Reserve warned that we will increase the rate, due to which inflation in the market will come under control. The region of the crisis that was to come in 2008 was the main region. Interest rate is to increase. The interest rates had increased to a great extent, due to which the inflation rate was very low and the interest rate became very high, due to which it was becoming very difficult to repay the loan and then on seeing this came the Lehman Crisis, due to which the market crashed.
Reason 2 - Interest rate
How much interest rate had started increasing in 2004, due to which inflation was coming under control, but the market had to bear the brunt because due to increase in interest rate, liquidity squeeze and money started flowing from the market and in 2008 you will see a fall. Got it. But when there was a decline in 2008, then the interest had to be reduced gradually, due to which the liquidity remained in the market and the market immediately recovered expenses and this happened in the year 2009. And the same thing was also seen in 2011, due to which there was a slight correction in the market, because of the recovery that had come in the market, due to which some profit booking is also inevitable in the market, due to which you will see this profit booking in 2011. And this is the crisis that came due to Covid - 19 in 2020 and there has been a lot of boom in the market for 2 years and because of that inflation is also going up very fast which has broken its 40 year record. Because of this, the market is seeing a decline and the Federal Reserve has also said that we will continue to increase the interest rate by 50 basis points in the coming time.
Reason 3 - Commodity prices
There was also a jump in commodity prices, due to which that is also said to be the main reason for the crisis and if the cycle of commodity is seen, then there is a boom in the coming 5 years and if you talk about commodity cycle, then It is because of the war between Ukraine and Russia, the prices of the community have gone up because the supply chain is disturbed and the prices of commodity will go up like this gradually. What if Russia goes on becoming Ukraine Kyiv and Accelerate? And its second main region is also being told that due to increasing corona cases in China, Beijing has been locked down due to which there is a disturbance in the supply chain and if it continues like this. If the supply continues to be a problem, then it is obvious that the prices of the commodity will go up and you can see further decline in the market. But if the supply chain gets better again. Because of that, you will also get to see a boom in the market.
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