It's interesting that when department stores have sales, people flock to the store to find bargains. I happen to feel stocks may be on sale right now. In looking at recessions in the U. S. going back to 1953, the average recession lasts about 10 months. During these recessions (nine of them) the S&P 500 dropped an average of 25.6% from its peak prior to each downturn to its trough during the recession. It is down 9.8% already in January. According to the January 21, 2008 edition of "Barron's", a feeling that a full-fledged recession is now priced into the bond market and is increasingly priced into stocks is being expressed by investment strategists.
So it might be a good time to go shopping!
