Thursday, February 19, 2009

What a fun in Stock Market

Here is the analysis on the USA stock market. I got this from Zacks.com (c)

Top 10 Worst Declines and Rebounds Within One Year*

Decline
Rebound
Sept. 1929-July 1932
-89.5%
+172.2%
Mar. 1937-Mar. 1938
-50.2%
+63.0%
Jan. 1973-Dec. 1974
-46.6%
+56.0%
Sept. 1939-Apr. 1942
-41.3%
+48.3%
Aug. 1987-Oct. 1987
-41.2%
+35.8%
Jan. 2000-Oct. 2002
-38.8%
+36.9%
Dec. 1968-May 1970
-36.9%
+52.7%
Nov. 1961-June 1962
-29.2%
+39.7%
Sept. 1976-Feb. 1978
-27.7%
+22.3%
Feb. 1966-Oct. 1966
-26.5%
+29.4%
Current bear market


Oct. 2007-Nov. 2008
-47.5%**




AVERAGE REBOUND
+55.6%

*Based on Dow Jones Industrial Average. Index is
property of Dow Jones & Company.
**Date of this study is 10/26/08.

So moral of the story, invest about 25% of your investible surplus regularly in cheap stocks.

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