Visitors Now:
Total Visits:
Total Stories:
Profile image
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Eight Straight Down Days… Here’s What Happens Next

Monday, November 7, 2016 5:45
% of readers think this story is Fact. Add your two cents.

(Before It's News)

U.S. stocks have fallen for eight straight days in a row…
This is an incredibly rare occurrence. It has only happened five times in the last 35 years.
So… what happens next? What should we expect?
Is eight straight down days an ominous sign? Is it just the beginning of a major downtrend in stocks?
Or is eight straight down days the complete exhaustion of a downtrend? Is it the bottom? Should stocks go up from here?
The reality is interesting…
Going back to 1982, we have had eight down days in a row just five other times. In every single one of those instances, the stock market was higher a year later.
The gains one year later were incredible…
The average one-year gain after eight down days was 29.9%. And again, the stock market was up – every single time!
These results are too good, actually. I've tested lots of investment systems over the years, and these results are off-the-charts good… But because this has only happened five times, we don't have a big sample size.
So let's widen our scope to see if these gains are for real…
What happens to the stock market one year later after SEVEN down days in a row?
Our sample size nearly doubles – from five unique occurrences to nine. And the results are still astounding!
The stock market was up 26.6%, on average, in the nine times that stocks fell for seven straight days, going back 35 years.
These results are still fantastic. But again, we're still only looking at nine unique instances. No statistician would call those results “significant.”
So let's widen our scope one more time…
What happens after six straight down days?
More incredible results.
A streak of six straight down days has happened 32 unique times going back to 1982.
After six down days, stocks delivered a 21.7% return, on average, one year later.
The winning percentage was still extremely high: Stocks were higher one year later 94% of the time.
So the takeaway today is clear: Don't be scared. Be bold.
Based on history going back to 1982, after a long stretch of losing days, stocks perform incredibly well over the next 12 months.
Invest accordingly,
Steve
P.S. Saving My Life update, at the end of Week 2 of 8: I'm pushing to give myself a great Christmas present – being in the best shape in years. I'm 227.8 pounds today – that's down 4.2 pounds in two weeks. How are you doing? It's just six weeks. You can do anything for six weeks, right? Let's do it!

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.