Stocks & Commodities V. 24:8 (81): Quick-Scans: Predicting the Markets of Tomorrow by Bruce Faber
At the beginning of the new millennium, the United States was speeding down a highway of peace and prosperity. For the previous 20 years, those who had been a part of the financial community, from Wall Street to Main Street, the trend had been up. Annual returns of 50% or more were not unheard of. However, anybody who then used the markets’ overall rate of return for the past 10, 15, or even 20 years as a predictor of what they were counting on for future years was soon to be disillusioned.
In March 2000, a full year and a half before Osama bin Laden became a household name, the overall markets
had already reached their peak. Author James O’Shaughnessy believes that the March high of that year was the equivalent of a 100-year flood in the financial markets.