History and cycles are not perfect predictors, but it’s worthwhile to pay attention to these indicators. One such chart, indicating the cyclical nature of stock markets, comes courtesy of Stifel Nicolaus (via U.S. Global Investors – Weekly Investor Alert). The graph below shows the 10-year rolling return of the S&P Stock Market Composite going back almost two centuries, indicating current performance (inside the circled area) is at low levels only seen during the Great Depression. Food for thought …
Source: U.S. Global Investors – Weekly Investor Alert, August 27, 2010.
