This article was published by The McAlvany Intelligence Advisor on Wednesday, April 4, 2018:
Sean Williams, writing for The Motley Fool newsletter, has given his readers what he calls “the closest thing you’ll ever get to a surefire stock tip”:
Since January 1, 1950, the S&P 500 has undergone 35 corrections whereby its aggregate point value has fallen by at least 10 percent….
Here’s the key point: all 35 of those stock market corrections have been completely erased within a matter of weeks or months (and in rare cases years), by a bull market rally.
I repeat, in 35 out of 35 instances since 1950, the S&P 500 has erased any stock market corrections totaling 10 percent or higher at some point in the future.
That’s a 100 percent success rate over nearly three dozen data points.
Buying any major dip in the S&P 500 is about as close to a guarantee as you’re going to get when it comes to investing in the stock market.
An investment advisor in Colorado Springs requires that his clients promise not to turn on CNBC during the day, but instead concentrate on living life. As a result, he says, he almost never gets a call during market downturns because his clients are focused on more important things.
Other investors, however, are no doubt calling their brokers following the news that the nine-quarter winning streak in stocks came to an ignominious end in March, with the Dow losing 616 points during the first quarter of the year.
It is helpful to remember at least two things: