Theres no doubt that its been a choppy August and September for the stock market. But I want my readers to look at these facts:
The Dow Jones Industrial Average opened 2011 at 11,557 and opens this last trading day of September at 11,153, down 3.6% for 2011 so far.
At the beginning of 2010, the Dow Jones Industrial Average opened the years trading at 10,500. By September 30, 2010, the Dow Jones Industrials was trading at 10,000 after a rocky August and Septembera decline of 4.8%.
In September of 2010, bearish sentiment amongst investors and stock advisors was at its lowest level of the year.
Today, bearish sentiment amongst investors and stock advisors is at its lowest level of 2011.
Theres a striking resemblance between 2010 and 2011 stock market action and I see this pattern continuing. Between September and December of 2010, the stock market rallied, ultimately leading to a 10% gain for stocks in 2010. On the backdrop of extreme bearishness, just like September of 2010, I believe stocks will rally from todays level to end the year higher.
The Dow Jones Industrial Average opened 2011 at 11,557 and opens this last trading day of September at 11,153, down 3.6% for 2011 so far.
At the beginning of 2010, the Dow Jones Industrial Average opened the years trading at 10,500. By September 30, 2010, the Dow Jones Industrials was trading at 10,000 after a rocky August and Septembera decline of 4.8%.
In September of 2010, bearish sentiment amongst investors and stock advisors was at its lowest level of the year.
Today, bearish sentiment amongst investors and stock advisors is at its lowest level of 2011.
Theres a striking resemblance between 2010 and 2011 stock market action and I see this pattern continuing. Between September and December of 2010, the stock market rallied, ultimately leading to a 10% gain for stocks in 2010. On the backdrop of extreme bearishness, just like September of 2010, I believe stocks will rally from todays level to end the year higher.