Taking the “Long View”of the Stock Market
Since mid-December, the benchmark S&P 500 index has rallied 12%. While that may not sound like much at first glance, realize that it’s a huge move in such a short time for the index.
This “huge” move has many smart traders warning of a correction. Remember, markets are like runners. They can’t sprint all out for miles without taking a “breather.” A breather is what many contrarians are expecting right now. But should that correction come, it’s worth keeping the “long view” in mind… #-ad_banner-#
Below is the performance of the S&P 500 over the past three years. As you can see, stocks enjoyed a huge rally off their 2009 crisis lows. Since then, stocks have put together a big bullish series of “higher highs and higher lows.” It’s a trend the great trader Ed Seykota would say he could see from across the room. So… sure, stocks are due for a correction. But considering that the big trend is up, we’ll consider it a buying opportunity.