Tuesday, May 12, 2009

Bear Market 1966-1967

Chart from Clusterstock.com

Above is the depiction of the bear market from February 1966 to December 1966. The S&P 500 topped out at 96.04 and dropped to 73.20 which is roughly a 24% decline. The market then rallied 33% for the next 12 months to new highs of 97.35. The main point here is to SELL high and Buy Low using a moving average crossover and your returns would have been much better than just BUY and HOLD/HOPE.

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