November 17, 2008

Profile of a Really Bad Market






There was a super bull market in the Dow from 1942 to 1966 (24 years). From 1966 to 1982 (16 years) the market melted down, again and again. The top chart shows the down drafts in the Dow during this period:

A. 26%
B. 37%
C. 46%
D. 26%
E. 20%

Then from 1982 to 2000 (18 years) another super bull. The second chart shows the down drafts since 2000:

F: 38%
G: 43% (to date)

Draw your own conclusion what the next 5 to 10 years may look like.

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