This chart of the Dow Jones Industrial Average Index from the year 1900 to 2010 illustrates the Grand Super Cycle, where markets exhibit a long period of a flat to declining returns that is often followed by a period of healthy performance. Since 1900, there have been four such periods, with the current one being the worst. Taking a step back further into time, since 1835, there have been only six other roughly comparable episodes. After the prior down phases, stocks averaged 13% per year gains over the subsequent decade. History suggests that those who stay the course will be rewarded.Friday, November 5, 2010
Grand Super Cycle
This chart of the Dow Jones Industrial Average Index from the year 1900 to 2010 illustrates the Grand Super Cycle, where markets exhibit a long period of a flat to declining returns that is often followed by a period of healthy performance. Since 1900, there have been four such periods, with the current one being the worst. Taking a step back further into time, since 1835, there have been only six other roughly comparable episodes. After the prior down phases, stocks averaged 13% per year gains over the subsequent decade. History suggests that those who stay the course will be rewarded.
