Archman Investor

S&P 500 Back above 50-Day Moving Average

S & P 500 25 year continuation trend line puts the S & P @ 750 as of today. Ofcourse it can be above that, near it, or slightly below it.

It always reverts to the mean however.

Everyone can get excited about stocks, and with the help of the financial media, their partners in crime the mutual fund managers, by golly we can walk this baby up to 1200 again on the S & P.

Just remember, everything reverts to the mean over time. The farther away we move from 750, the farther we have to fall back to that level.

It sure would be nice if the S & P was at 750 and from there, just went up 10% a year (dividends included) for the foreseeable future.

Instead of what could be up 30%, down 12%, up 15%, down 5%, up 8%, down 45%, etc. But alas, thanks to the Fed and its "partner" trading desks at all the major banks and investment houses, we can expect the market to benefit Wall Street while mom and pop keep losing their shirts trying to figure out when to "get in".