OT: Nasdaq Composite 15 Year Perspective --Going Nowhere Fast (Chart)
Posted May 04 2009 5:16pm
My Quantcast statistics indicate that a large fraction of subscribers to the Alzheimer's Reading Room are interested in investing. Quantcast also tells me the audience is highly educated and "more affluent". It is likely that many of the subscribers to the Alzheimer's Reading Room are investing for retirement. You might not know this, there are about 88 million individual investors in the United States.
If you read my profile you know before I assumed my new life as a caregiver, I spent a couple of decades on Wall Street. In addition to the Alzheimer's Reading Room, I have two investor blogs.
I am putting up this Nasdaq Composite chart for one simple reason -- there are some real opportunities in the stock market right now. Maybe one of the best opportunities of a lifetime.
If you are older don't dismay. When the last bull market started in 1982 my mother was 66 years old. The Nasdaq soared from under 300 to 5,100 in 18 years. By the way, my mother is still going. My point? You are never too old to take "some real money" out of the stock market.
If the readers of this blog don't flame me, I will put up some good, specific, long term investing idea from time to time.
Sometimes it is helpful to look at the market from a long term perspective. I think most believe the current bear market is new. However, the long term view indicates we have been in a bear market since the Nasdaq Composite topped out at 5,132 in March, 2000.
The high for the Nasdaq Composite in 1997 was 1690 -- an all time high. If you look back and compare prices you might get the idea that we are going no where fast. Although, it has been one wild and crazy ride.
What comes next?
Are we now in a long period of consolidation, prior to a new big bull?
Or, is the market consolidating before re-testing the October, 2002 low near 1108?
I think the important perspective here is simple. This is a good time to be buying stocks on breaks to the downside. If you are young enough and investing for retirement, this might be the opportunity of a lifetime.
Bob DeMarco is a citizen journalist and twenty year Wall Street veteran. Content from All American Investor has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, Blog Critics, and a growing list of newspaper websites. Bob is actively seeking syndication and writing assignments.