What 500 years of market data tells us

With 500 years of market data what indicators get validated, and which one’s lack support in the data?

There are a ton of statistical relationships and factors that currently tell us a lot about the movement of the market, but which ones predict movement with the most accuracy.  This is the key question that every investor wants to know; and we have the answer.

 

Its silly to think with all that data accumulated over hundreds of years its so difficult to pick a winning stock.  The markets are constantly changing and adapting based on our knowledge of the past and the technology that’s effecting our future.  This is a kay factor in why we cant pick certain indicators that work all of the time.  Knowledge of the past and the mindset and ability to sift through it all is a feat only few can accomplish.  But with that being said its not impossible if you are dedicated and commit to success.

 

Market cycles are shaped by our memories and personal experience in everyday life.  It seems like newbies in the market will always lose money at first which is vital to teaching them key lessons on their own while more experienced investors can have their views clouded by their own formative years.

 

The only thing that really gets validated with 500 years of market data would be that nothing is 100% predictable and that everything appears to happen in cycles, with these cycles driven by human emotions.

 

People say “ well sure, but that data set started so long ago how can it happen again, we have evolved so much.” While that is correct, time and time again we see the rise of the past and the same pattern over and over again.  That’s why momentum stocks are so strong and why many experts use this as a significant indicator.

 

When you sift through all the date you would be able to determine that valuation based market timing, weather using broad market factors or not, it is worth the effort.  Many stock selectors work, and many don’t, but taking the time to figure out which ones to is the key to becoming a successful investor in the market.

 

If you would like to know more and are serious about profiting from the market don’t hesitate to reach out to one of our experts.  We love talking to members about stock picks and what makes a good set of indicators when screening for stocks.

 

We hope to see you in the chatroom.

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