February 5, 2008
It was around 70 degrees today! What did you think I was talking about?
The markets??? Oh yeah, the markets. What's there to say about the markets? Good news up, bad news down. I love roller coaster rides. The ones at amusement parks that is. So moving on, if you want to read what brought the markets down today, here are two articles for you to review if you want.
Now I thought what I would do tonight is give you a little history lesson. How many of you remember the worst five Januarys since 1926? I'm waiting.... hmm....no answers.
Okay, well if we go from worst to best, let's see what happened to the markets in general afterward.
January 1 year Return 2 year Return Near
Total Return After January After January Recession
1970 -7.4% 17.1% 30.9% Yes
1960 -7.0% 15.0% 32.1% Yes
1939 -6.7% 3.2% -8.1% Yes
1990 -6.7% 8.4% 33.0% Yes
1978 -6.0% 18.1% 42.4% No
Average -6.0% 12.3% 28.0%
(all down years)
So this January we had the worst ever. What will the future hold? Will it be 1939 all over again (BOOOO....)?
No, like they say, it's always something. If it wouldn't be the subprime mess, it'd be something else.
So that's the history lesson for tonight. Have a good day tomorrow.
Pete
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