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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: Renee Scherb who wrote (2817)1/15/1998 6:36:00 PM
From: Boca_PETE  Read Replies (3) of 42834
 
Renee: Marketimer's 8.8% gain since 8/87 may apprear low because the starting point of the measurement is at the peak of the 1987 spike before the so-called crash that year. If you remember, the S&P actually ended UP in 1987 by approximately 5%, however the market got way ahead of itself in a parabolic rise before it crashed. It appears that the measurement is unfairly taken right at the peak of that parabolic rise before the crash. Interesting comparison, but how meaningful is it ? - Frankily, I don't think it's worth the paper I printed it out on !

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