Bear Stearns, the US investment bank that was the first domino to fall in the GFC, was promised a bailout by the New York Fed on March 14, 2008. Within the next week, the Fed pulled the offer, and the firm collapsed. In hindsight, it should be obvious that this was a great time to sell everything and get out of the market… Or was it? In the two months following the collapse, the S&P 500 rallied ~10%! In fact, even after Lehman Brothers collapsed on September 15th, the market continued to hold up until the 29th of September, when in fell nearly 9% in one day. Could the ‘Brexit’ vote be a ‘Bear Sterns Moment’, rather than a ‘Lehman Moment’, as described in late-June? Only time will tell, but it’s worth noting that the FTSE has rallied a bit over 10% in the three weeks since the vote. (Image credit: Livewire, FactSet)