Wednesday, February 11, 2009

Near The Bottom If History Repeats Itself?

From a pure technical perspective, the depth of this market decline has mirrored past declines. In terms of duration, the decline is about half as long as the longest market contraction that began in 2000 as noted in the below chart.

(click to enlarge)

During the depression years, the worst back to back yearly contractions occurred in 1930 and 1931.

(click to enlarge)

S&P 500 calendar year returns during depression years

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