Garden Growing-Why not now? 6.6.17


EOM Q&A:  Garden Growing-Why not now?  6.6.17

Today, I begin a new series to answer your question, “with the strength of the current market, why not start now? 

When complete, I revisit our All-Star A&B and High Dividend CEF candidate plays, and the promised “Garden Growing Review” report.

This chart is an excellent Macro view of the market since 1926 compliments of First Trust.  Bull markets are blue and bear markets are orange.  The data represents the duration, total percent return and annualized returns.  Recessions are also highlighted. Save this graphic for future reference. 

Since the copy/data is small, let’s view the micro version (below) focusing on the current and last two bull-bear markets. 

Key Points….

You can see the returns from the last two and current, bull runs and bear pullbacks.

Bear markets dropped 29%, 44% and 50%.

No one knows exactly when the next profit taking will begin.

Key questions…

1.  If nearing or in retirement, can your portfolio survive a 20-30% drop?
2.  The current bull run of 8 years is between the last two-time wise.
3.  During every bull runs, there are pullbacks
4.  Is it smart to enter at new highs?
5.  What would it hurt to wait until at least the next five percent pullback?

Tomorrow, we study previous pullbacks and see why a 10% to 15% pullback may be harder to obtain.

Enjoy your day,

David O. England


Plan your work, work your plan, and share your harvest! 1 Timothy 2:1-2

This information is for Educational purposes only. It shall in no event be construed or interpreted as an offer or recommendation to buy or sell securities of any kind.

DAVID O. ENGLAND is the founder of the Eye on the Market-Training Academy and Associate Professor Emeritus of Finance. This column is presented for educational purposes only and not intended as financial advice.

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