Buying two-sigma pullbacks historically works

On this episode of What Did We Learn, Josh Brown, Nick Colas and Jessica Rabe discuss: Oil, energy stocks, and how rising prices are impacting equities and the broader market outlook.

How close the S&P 500 and Nasdaq are to historically oversold levels, what a 2 standard deviation drawdown means, and why those setups have led to strong forward returns in the past.

Why a -10% year for the S&P 500 is so rare, the three major catalysts behind big drawdowns, and how today’s environment is showing elements of all of them.

Plus, what could shift the narrative, the risks of a deeper decline, and what the VIX is signaling about volatility and future returns.

This episode is sponsored by Teucrium. Find out more at https://teucrium.com/agricultural-commodity-etfs

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