sorgmot

Why GE's Miss Matters

There is a 2 year period in the typical USA business cycle when many common stocks decline in price. This period usually follows a 4 or 5 year period during which stock prices rise for many stocks causing the stock averages to rise. The Federal Reserve Bank typically raises interest rates as the stock averages rise.

In the current business cycle, we expect the 2 year decline to run from October 2007 to October 2009.

To monitor this decline and see what it does to a diverse portfolio of common stocks, we set up such a portfolio in a spread sheet which measures the short portfolio gain by the amount of declines in the stocks therein.

To see this test portfolio visit our site at
financialtrax.googlepa...
and click the Portfolio (sample) tab
then click the next Portfolio (sample) tab.

This a an academic experiment and not a recommended investment.
See your own investment advice consultant before investing.