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Stocks, Commodities and Forex Trading News Stories Stock Market Double Dip? But We Have An Election Coming Up Sept. 29, 2010 by Samuel Chong When many people fear that there would be a second dip, it may not come. In the last a few months, many economists and stock market forecasters predicted or feared for a second dip of recession, or the stock market prices. The news and articles about the "second dip" were all over the places. However, history has told us that when many people fear that certain things would happen, and when it is reported in the press, it will not happen. Examples would be the millennium bug before 2000, as well as the fear of another 911 event. Therefore, we believe that Warren Buffett is correct in saying that there won't be a second dip, or a second recession soon. On the contrary, the stock market has shown a pattern before elections. History and statistics show that the stock market generally goes up before the elections. A detailed research by Marshall D. Nickles, EdD shows that a profitable
strategy would be to invest on October 1st of the second year of a
presidential term and sell on December 31st of year four. After laying out
the data to support this strategy, he goes on to say: Thus, we believe that the US stock market is likely to go up soon. Below is a table that shows the data
Should you invest in the US stock market? Only if you believe that the pattern will continue. You may also consider other factors such as the possibility of the depreciation of the US dollar as well as the possibility of inflation. Thus, the decision is yours. . .
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