This is a follow up to my previous article.
I want to talk a little about this 9 year Bear market. This is what I am calling this period of time.
Others disagree and call the last nine years a series of Bear and Bull Markets. Bear-Bull-Bear. I see that 2005-2006 "Bull Market" as a correction in a longer term Bear market.
What we have lived though 90% of is a period very similiar to the period 1972-1982.
On October 1st 1972, the Market hit a high of 1020. The Dow rose and fell over the next 10 years before finally rising over 1000 permanently in October of 1982 when the Dow closed at 1046.
On October 1st of 1999, the Dow closed at 11497. Today the Dow closed at 11022. For the past 9 years the Dow has risen and fallen without making any meaningful advance.
But, what happened in 1982? The Dow began a 20 year advance that carried stocks to previously unimaginable heights. The Dow went from 1000 to 11497.
So, what will happen at the end of this long hibernation? The Dow will rise to unimaginable heights. We are talking about a Dow Jones of 50,000-100,000.
This won't happen over night and this won't start tomorrow. But, this will happen. History repeats itself.
I want to talk a little about this 9 year Bear market. This is what I am calling this period of time.
Others disagree and call the last nine years a series of Bear and Bull Markets. Bear-Bull-Bear. I see that 2005-2006 "Bull Market" as a correction in a longer term Bear market.
What we have lived though 90% of is a period very similiar to the period 1972-1982.
On October 1st 1972, the Market hit a high of 1020. The Dow rose and fell over the next 10 years before finally rising over 1000 permanently in October of 1982 when the Dow closed at 1046.
On October 1st of 1999, the Dow closed at 11497. Today the Dow closed at 11022. For the past 9 years the Dow has risen and fallen without making any meaningful advance.
But, what happened in 1982? The Dow began a 20 year advance that carried stocks to previously unimaginable heights. The Dow went from 1000 to 11497.
So, what will happen at the end of this long hibernation? The Dow will rise to unimaginable heights. We are talking about a Dow Jones of 50,000-100,000.
This won't happen over night and this won't start tomorrow. But, this will happen. History repeats itself.
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