Is It Possible For Stock Market Prediction To Be Accurate?
Is it possible for someone to predict the stock market with accuracy? Stock market prediction is a subject that is one many people try to find information on.
Large funds and stock brokers would give a lot of money to have a crystal ball that works even somewhat consistently. Just a 1% improvement in your lifetime earnings yield can have dramatic effects on your retirement account.
Most people don't realize that the stock market follows some pretty well understood cycles. For example the 6 Month strategy as it is called typically outperforms being invested in the stock market all year round.
Normally investing from November to April is the best performing months in the stock market. 2009 was an exception as the drop in the market early in the year led to a pretty decent rebound during the summer.
So can you truly create an accurate stock market prediction?
Even if you can provide only provide some forewarning of large potential drops it would allow you to get prepared and put some protection in place. Being able to avoid even a one or two time event where the market retraces 25 percent or more would add a significant amount to your final account balance.
Just think of it this way. If you start with one hundred thousand in an account and lose 30% of it, you have to have over a 40% gain to off set it. Huge drops can have devastating effects on our retirement accounts.
Be prepared and understand when the market is setting itself up for a fall. Many people have been led to believe that the stock market only goes up.
History has proven to us that what goes up must come down. While the market tends to trend up, it does have periods where it goes sideways or bounces up and down for a long time. Just look at 1964 to 1984 to see a market that was unpredictable but went no where for 2 decades.