Thursday, May 29, 2008

Major Bear Market

A picture says more than a thousand words, and this picture indicates that we are in for a long bear market. The average longterm bear markets has lasted for approximately 18,5 years, but since Dow Jones has new All time heights since the 2000 hysteria, the massive bear market might just have started with the credit crunch. For Sweden's OMXS30 thou, the index has not reached its 2000 ATH and with inflation at its highest level on several years which is probable to continue northwards for many years according to the author of "Hot Commodities", Jim Rogers, it's not looking so pleasant. High inflation has a statistic negative correlation to most indicies. If the picture provides a general vision of the future, we might see new heights in 10 years from now, in 2018...

No comments: