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Bull or Bubble?

Posted By Barry Ritholtz On December 5, 2013 @ 1:08 pm In Investing,Markets,Quantitative | Comments Disabled

Annual_Price_Performance_800px [1]
Source: 361 Capital [2]

 

This chart comes to us via Blaine Rollins [2] of 361 Capital. I find it provides great context for the current markets, especially given the amount of bubble chatter we hear these days.

How common are double-digit equity gains? How often do we see markets up 20 percent or more in a given year?

As it turns out, when markets are in the green, double-digit gains are the norm. Only one in four years where markets are positive do we actually record single-digit gainers. Indeed, three out of four positive years (19/76 or 0.25 percent) see gains that are in the double digits.

 

Continues here [3]


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2013/12/bull-or-bubble/

URLs in this post:

[1] Image: http://www.ritholtz.com/blog/wp-content/uploads/2013/12/Annual_Price_Performance_800px.jpg

[2] 361 Capital: http://www.thereformedbroker.com/2013/12/03/361-capital-weekly-research-briefing-67/

[3] Continues here: http://www.bloomberg.com/news/2013-12-05/bull-or-bubble-ritholtz-chart-.html

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