Stock Market’s 3rd Quarter Drop Means 80% Chance Of Rise
Stock market quarters can have unique personalities. Usually, a quarter has a controlled range of volatility with different industries and stocks producing a diversified movement for the market as a whole. However, occasionally things come unglued and a strong trend affecting most stocks takes hold (either positive or negative). Of the past 200 quarters (50 years), 26 have been up 10% or more, and 16 have been down 10% or more. Last quarter’s 12.1% decline puts it in the latter camp, ranking 12th among the past 50 years’ largest down quarters, as measured by the Dow Jones Industrial Average (DJIA).
The question is: What does that large drop mean for the future?
Article posted on SeekingAlpha.com
