Railroads were the invention which would change the world forever.
For his purposes, a period where the stock market out-performs money market funds is good and where it under-performs is bad. The potential profit is spread over a greater amount of resource, and earnings growth suffers. Yes, the tide will eventually rise, but it will be a long time. We are looking for clues as to what the stock market is likely to do in the future so we can adjust our investment strategies and portfolios. The biggest money, the greatest fame, and the greatest thrills come from being at the helm of that transition.
How many of you remember the direct mail flooding our mail boxes, not to mention the books, screaming gloom and doom? Obviously, they were wrong. If we can get some idea of what the future will look like by reviewing the past, we will be more successful as investors. Easter has always been a time of reflection for me, and I shall take advantage of this weekend to do so. First, he takes a purely statistical view of the stock market, looking for repeating patterns. Airlines, radio, television and the automobile all had their boom and bust cycles. Most investors expect the rising tide of the market to deliver their profits.
Railroads were the invention which would change the world forever. This is a paragraph of text that could go in the sidebar. You can plant spring crops during the winter, but you're going to have to wait until Spring to see them come up. In a secular bear cycle, the tide is not rising, but falling. We will show later why we should expect a falling dollar for the next few years. It follows that the growth of earnings will be smaller as well.