S&P 500 Down Five Months In A Row
March's decline in the S&P 500 of 0.6% marked the fifth straight month of losses for the index. Since 1928, there have only been nine other periods where the S&P 500 went as long or longer than the current streak of five down months. As shown below, the odds for a rebound in the six month are nothing to write home about. The average S&P 500 return during the sixth month is a gain of 0.41%, with gains in only four out of nine periods. The results are even worse over a three month period, with an average decline of 2.64% and gains in four out of nine periods.
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People shouldn't stress about this. It's like the old "grocery store" analogy - if all of the stuff I usually bought at the grocery was on sale for 50% off one day, I'd be skipping down the isles pulling cheap groceries off the shelf. It's the same in the market - I haven't felt this good since 2001 and AXP was trading for $27 per share.
-Wayne
Posted by: Wayne Mulligan | April 01, 2008 at 12:57 PM
How's that firesale working for you now?
Posted by: Yo Wayner | June 26, 2008 at 04:24 PM