Birinyi: Where do 3% declines occur?

http://tickersense.typepad.com/ticker_sense/2007/03/where_do_3_decl.html

 

thanks ... incidently there is a nice list of blog links there on that site

 

In all instances of 3%+ declines, the averages show that the S&P 500 rises in the month and three months following. When the 3%+ declines come during bear markets, the average gain over the next month is 3.40% and 4.35% over the next three months. When the 3%+ declines come during bull markets, the average gain over the next month is 2.95% and 9.32% over the next three months.



Sounds almost guaranteed that there is no risk buying the SPY or DIA here....Guess if I buy some SPY ill get a 3% return by early April, not bad for a month.