5 Ways to Survive the Rest of the Year
Keith Fitz-Gerald, September 25, 2009
Free Trading Guides
-
That two most pressing questions for investors right now are: What's going to happen next? And what should we do about it?
Although pundits are spewing forth about an "improved" outlook for the U.S. economy, history tells us that we're more likely to see a stock market correction in the near term. During the last half a century, stock market rallies that follow horrific declines like we've seen in the past 24 months are typically followed by a secondary decline of 14% to 50%. (See 10 Reasons the Market Could Crash in October.)
What will happen after that is anybody's guess. According to a study by Ned Davis Research, any secular bull market that followed a recession in the last 100 years resulted in gains in excess of 60% during an 18-month stretch. In situations where that rally was actually the catalyst for a resurgent economy, stocks averaged 110% over the next 36 months.
But we also have to remember that the bear market that started all this grew out of the worst financial crisis since the Great Depression.
More By This Expert
Five Keys to Value Investing Profits
Some say this style of investing is broken, but there is a time and a place for this technique to work when you keep your focus.
Which Party Is Actually Better For the Markets?
While many people believe that Republicans are better for the markets, historical data on the Dow doesn't seem to support that notion.
Be Selectively Bullish During the Financial Crisis
The Street's assumptions are wrong (again). You can pick your places to start buying now.
8 Keys to Trading for Bear Market Profits
In the midst of a bear market, there are eight secrets that will pave the way to bear market profits.
Keith Fitz-Gerald has a winning formula that will help traders get the profits they desire.
