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From 1982-2000, the markets appreciated at almost twice the
long-term historic rate.
It is reasonable to expect that for reversion to the
mean to occur, one should expect lesser returns for an era
of similar duration.
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•The magnitude and duration of the
bull market created inaccurate perceptions to the general
public about how the markets perform and operate.
Misperceptions that certain sectors, stocks, or the
markets in general MUST rebound abound.
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•If you are an investor, you
welcome the decline in equity prices while you are
accumulation mode.
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•It is highly unlikely we will
experience a prolonged rally that resembles the late
90s euphoria. We will
most likely experience periods of bull markets and periods
of bear markets.
-
•The late nineties blow off top
marked the end of that lengthy secular bull market cycle.
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•The road is more risky as the
financial markets have become more heavily populated with
speculative behavior in place of a vehicle for savings
placement for long-term return.
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•Asset classes that did poorly in
the secular bull market of 1982-2000 are likely to
outperform in the early years of the new millennium.
These includes commodities, gold and metals, oil, &
energy.
