I read the following in Friday’s FT and thought it is useful to quote here. “History provides some useful benchmarks. After the horrible 1973-74 bear market, equities traded up, though unevenly, until 1982 with six specific bull runs that generated an average 32 percent gain”…but, a buy-and-hold strategy over that time period yielded only 9% compounded annual gains, which merely kept pace with inflation. Accordingly, the idea of meaningful trading rallies may be the great lesson of equities following massive market corrections, similar to the one just suffered by investors and the one experienced in 2002-2002 period”
Needless to say, an investor will be better off using technical analysis to enter and exit the market. This blog will help you towards that end.
Related S&P500 links:
Was that the stock market bottom?
S&P500 and Citi
Fifth wave extensions can make you rich!
Harmony in markets: S&P500
S&P 500: Potential Ending Diagonal Triangle
Ending Diagonal Triangle in S&P500?
S&P500 Elliott Wave update
S&P500 index: is a top already in?
S&P 500 update: where is the top?
S&P500 continues its rally
S&P500 remains resilient
S&P500 ready to dive?
S&P500 Update: May 19, 2009
S&P500 Elliott Wave update:21 May 2009
S&P 500 breaks higher: update 2 June 2009