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U.S. Market Valuation Approaching “Sweet Spot†for Double Digit Returns
With the way stocks are being whipsawed, investors often ask me how to tell when the market is ready for a rebound. While there’s no way to ever be 100% certain, I usually just let history be my guide.
And history has a very interesting story to tell right now.
Just take a look at the following chart. Since 1927, the markets have shown beyond a shadow of a doubt that the worst of times for the U.S. economy have literally proven to be the best of times for stocks when it comes to choosing a time to buy.
The best buying…
16Jan2009 | Money Morning | 0 comments | ContinuedIn the Long Run, the Dow’s 40% Nosedive May Actually Turn Into a Safe Landing
By Martin Hutchinson
Money Morning
With the near-record 678-point plunge yesterday (Thursday), the Dow Jones Industrial Average has plunged from its all-time-record high of 14,280 to below 8,600 in just one year’s time. To those accustomed to a five-figure Dow, this 40% freefall represents the unexpected descent of the stock market into a gigantic pit that signifies the dawn of the second Great Depression and an end to the free market system.
However, for those of us who believe in fundamental stock-market valuation, the outlook isn’t dire at all – indeed, the stock market’s long-term outlook is as upbeat as it’s been for…
13Oct2008 | Money Morning | Comments Off | Continued
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