Historical Stock Charts, What Can We Learn
I like to immediately focus in on the stock market crashes. Most of which seem to recover quite quickly, as demonstrated by the crashes of 1987 (23% drop, recovered in nine months), 1998 (36 drop, recovered in three months) and 2002 (37% drop, recovered in two months). However, what about periods of low/no growth such as those seen between 1966 to 1982? It is said by Jim Rogers, Dan Denning and many others that we are in for a period of low growth, with commodities set to out perform. Looking at the above diagram, I can’t help but agree with their predictions (from a chartist point of view). I thought that it would be interesting to focus in on a period of no growth as the chart below illustrates: It is worthwhile looking at this time period and considering what investment methods outperformed and should they be considered in today’s climate? Are commodities the answer?