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The Lost Decade

Posted By Barry Ritholtz On November 14, 2008 @ 11:30 am In Investing,Markets | Comments Disabled

Fascinating chart via Jack Ablin of BMO:

[1]

>

I would modify Jack’s rule: In a bear market sell off, you want to buy for the trade in the 15-20% zone, not 5%.

I haven’t backtested the reverse, but I would guess thats true too — selling into a 20% pop over the 200 day moving average in Bull markets.

>

Source:
Playing a Sideways Market
Jack Ablin
BMO, October 31, 2008
U.S. Portfolio Strategy


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