from 1565 to 1100...a 30% decline in one year. All the gains made between 2004-07 gone. Only 2003 gains remain. just amazing. I don;t even remember the last time the spooz was below 1200. Seemd like so long ago. I could have never imagined it being so severe. The dotcom selloff was 50% and that was valuations were much higher and there were negative GDP quarters.
We are actually back to the 1998 levels on the SPX. 10 years, a lot of pain, and no gain (except the dividends).
What it tells you? A screaming long term buy. Load up on those leveraged ETFs, stop trying to pick an exact bottom, go to sleep and wake up in 2 or 3 years.
this is what I'm saying. But oh geez, it just gets more and more painful to hold long. I'm a long term believer in the 8% / yr appreicate of stocks, but wow does it get painful I hope I don't convince myself to sell at the bottom.
i think bidu lost most of it's value as with all chinese adr's because the CHINESE stock market is not off just 30% like the spooz it is off a whopping 62% from october highs, i think THAT is a buy.
Why not throw a 200 Moving Average on a Monthly Chart and just buy or short the breaks? That way you make money on the way up and down....
Just ask yourself: How much may I gain, and how much may I risk? Let's say you expect the S&P to go back to 1550 (about highs), in a few years. Now it's 1050, 500 points below, almost 50% profits. How much can you risk? 20%?, 30%? even risking 35% to get 50% looks like the deal of a lifetime to me, so I'm going for it.