The
"Sector Timing Report" gives you the power to outperform the
markets with sector rotation strategies.
In October of 1929 the Dow Jones Industrial average started its
decent into the single largest broad market crash on record.
Over the course of the next 3 years the DJIA dropped from over
350 to below 50. For investors that had bought in or near the
peak of 1929, over 80% of their stock portfolio was lost.
The Stock Market Crash of 1929 and the ensuing depression left a mark on a
generation of people, and will go down in the history books as
one of the great "busts". But with every bust there is a
preceding boom, and the 1920's were no exception.
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"In constructing optimal financial portfolios we find that sectors offer
higher potential returns and lower correlations compared to
standard equity breakouts based on market capitalization or
investment styles" |
The preceding boom (1922 - 1929)
The DJIA recorded a 466% increase in the 7 years leading up to
the crash during the "Roaring 20's", not unlike our Nasdaq runup
before 2000, which recorded over a 600% increase in the
preceding 5 years to 2000.
The big concern - these runups lead up to larger corrections.
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