These Charts Suggest a Possible +/-60% Decline in the S&P 500 by 2014

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J.P. Morgan Asset Management has developed a chart showing the past two cycles in the S&P 500 highlighting peak and trough valuations. At face value it is very alarming as it suggests a potential decline of somewhere in the vicinity of 60% over the next year or two and concurs with previous innovative trend analyses included in this article. Charts: 4

By Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and www.munKNEE.com (Your Key to Making Money!).

The chart* below shows the S&P 500 at its inflection points over the past 15 years showing the % increases and decreases between peaks and troughs complete with index levels, dividend yields, and the 10-year U.S. Treasury yield.

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