Believe it or not, history offers surprisingly good news about what the stock market will likely do from here. No, history doesn't always repeat itself, but, as the saying goes, it rhymes.

Here is some history of the S&P from article which is useful to consider in our current bear market:

From 1956 to 2001, the S&P experienced nine bear markets. On average, by the time the S&P entered bear territory, most of the decline was behind us.

Soon after the onset of a bear market, the market generally has risen.

Once a bear market ends, the rally out of that bottom is very sharp and very, very profitable.

 

Submitted: Jul 15, 2008    Views: 182    Comments: 2    Likes: 1   


View Article: http://www.kiplinger.com/columns/value/archive/2008/va0714.htm


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Comments Received:

JRodgers

Anybody who would gamble that we are at the bottom here and put new money to work is playing Russian roulette, especially if they are going after the financials. You are correct that if you are correct, you will make a lot of money, but the consequences of being incorrect are dire.

Posted: Jul 15, 2008

Sam Cass
Sam_Cass

Good article. I believe in the buy low sell high principle. I think a low is coming soon and it will be a great buying opportunity. You can figure it out by scanning the business press and seeing how many of the headlines are negative. The biz press are trailing indicators so offer some clue of then it will all end. Give it another couple of months and then I'll start buying.

Posted: Jul 15, 2008



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