Ok, so this morning we may have used a bit of a dramatic headline to grab your attention, our apologies, but it is a Friday, and we wanted to add a bit of spice to the day going into your weekend.
Here are a few terrific historical stats from Investors Business Daily this morning, Friday May 21, 2010.
“While the losses in the indexes have been significant since they marked their highs in April, they aren’t unusual. Rebounds from history’s nastiest bear markets have involved a huge move up of 50% to 100%, then a significant correction, and finally a second leg up.
The average correction was about 21%, the median 19%……….
Historically, the second leg up offers a much smaller percentage gain than the first leg. The median gain was 27%”
We always remind ourselves, history is just that, history, and is not the future, but history does at times rhyme with the future.
The S&P 500 is down about 12% from it’s April 2010 high, so far. The most telling fact of IBD’s stats, in our opinion, the second leg up was only 27%!
Today is options expiration, a day we rarely participate in, but watch closely.
Have a Good Weekend !
JK