Major Decline
“Recessionary” Valuations?
The bear was a mere cub back in March when we examined the historical record of buying S&P 500 dips in the -10% to -12% range. “Blindly” buying them turned out to have mediocre returns, but we illustrated that the positions of various business-cycle indicators could help one determine whether or not catching the proverbial “falling knife” was warranted.
A Market That Defies Description
We’re sure that it’s not lost on our readers, but the stock market loves to toy with people. The dollar costs of a decline and the opportunity lost from misplayed manias are bad enough. This particular market, though, seems to take offense when you merely try to label it. Correction or bear? The debate rages on, even though the flagship fund of the lone equity manager who’s a household name is down 75% from its peak—and still raking in money!
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