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Strategies & Market Trends : Z Best Place to Talk Stocks

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To: DanZ who wrote (40599)6/13/2002 6:06:27 PM
From: Joe Stocks  Read Replies (1) of 53068
 
>>but I don't think that you would find that pattern holds up over a longer period of time.<<

Dan, Might be good for you and others to pick up the book "Riding the Bear" by Sy Harding. It's just not about bear markets but also mentions seasonal investing. In his book he writes that if a study was done using 1950-1997 market results. If an investor put $100,000 in the Dow from November 1 to April 30th and repeated year after year, his $100,000 would have become $2,761,113 by April 1997.

If he woould have done the opposite with investing in May 1st through November and taking the money out November 1st he would have only $114,840 or a gain of just $14,840.

Anyway, it's a good book. Good reading if you really don't understand bear markets. Book was written in 1999. Very timely IMO and I read it just as it came out which opened my eyes some. I do think we are in a major bear market that is going to go on for several years. My biggest fear is the babyboomers getting so discouraged that they pull their money out of equities. My second biggest fear is that they will leave it in too long losing a major portion of their savings. Hard to reconcile those two thoughts.

Joe
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