The BIG Picture

Discussion in 'Economics' started by Apbideas, Jan 8, 2016.

  1. Apbideas

    Apbideas

    BIG.jpg

    Sometimes keeping things in perspective can be harder than it looks...any thoughts?
     
    Baron likes this.
  2. Baron

    Baron ET Founder

    Yeah, it's amazing how shifting the timeline like that tells a completely different story that is what is currently being perceived. For whatever reason, we as humans tend to think not about reality, but instead we become overwhelmed with our "perception of reality".
     
  3. Give me a chart long enough and I can predict the future.
     
  4. I have no idea what GR is,
    But I agree...it's important to have vision to see the greater picture -- and not be swayed by relatively petty or minor hiccups.
    ...it could make a huge difference in your profit.
    (but of course, everything is or can be a double-edged sword as well. it's all about your own personal call and conviction.) :cool:
    [​IMG]
     
    Last edited: Jan 8, 2016
  5. I don't think you are going to get much sympathy if you say, "I got wiped out during the first week market crash of 2016."
     
  6. Chubbly

    Chubbly

    Scaling is an issue with that chart. The crash of 1987 is barely noticeable. The S&P was was 21% that month. I think a better chart is to show % drops in a month
     
  7. thigle

    thigle

    i would put the chart to logarithmic to see relative change instead of nominal. other wise good info.
     
  8. Apbideas

    Apbideas

    Thanks everyone for your insights...I keep this chart on my wall to remind me that over longer periods of time the market tends to find a way to drift upwards. It never strays very far from that 8% nominal growth rate and the more time we spend beneath that rate the more dramatic the inevitable return will be when it happens. To think of it another way that 8% figure implies an SPX level of approximately 3727 by 2020 which is almost 100% higher from where we are today! Don't get me wrong...I understand that things can always change...so when it comes to investing I never over do it, I'm always diversified and thinking about the "big" picture.
     
  9. Chubbly

    Chubbly

    Since Dec 30 we have lost approx 6-7%
    To put that in perspective going back to June 1986 this would rate at the 20th worst month out of in that timeframe of the past 356 months and we are only 1/3 done the month.

    So even if we stop at this level, this is in the top 5% worst months since 1986

    But then again, it did shoot up approx 9% in Oct 2015 making it one of the best months on record.
     
    Last edited: Jan 10, 2016
  10. Banjo

    Banjo

    Look into Kondratieff cycles, you may find it interesting.
     
    #10     Jan 11, 2016