State of the Economy and the Stock Market Outlook

As if the markets going down by 50% over the past year (2008) is not depressing enough, the forward looking view needs the markets to go up by 100% to get back to parity of a year ago. The leading question is, when will that happen? Itís safe to say the markets wonít double in the next year. Can it take 10 years for the markets to recover the past yearís losses? An even more provocative thought is, will it ever get back to those levels?

If one were to remain in the stock markets for wealth creation, as opposed to other forms of investment, there are plenty of investment strategies including things such as money management where dollar-cost averaging would be utilized to buy accumulating shares of a stock over time. With the notion that people put money away for long-term savings purposes, it makes sense to accumulate stock holdings as the capital becomes available. Even if they have a big capital base to begin with, it makes sense to use dollar-cost averaging to build the stock holdings. For example, buy more to accumulate a stock when the price dips.

For people choosing to stay in the stock markets but not wanting to wait on long-term investment or wanting to gain back more quickly, trading the trend cycles would seem the most appropriate strategy. It goes without saying that the right stocks in the right sectors need to be found. And if the trader is willing to accept more risk, going long and short on stock trading will maximize the returns.

It is certainly interesting times ahead to see the progression of the economy which of course is the basis for stock price appreciation or further stock price erosion. There is plenty of research to do in order to determine the best stocks to indulge. And when the stock trader is ready to execute, technical analysis is equally important for ultimate success.

More you might like

Candlestick Technical Analysis : An Introduction

This article provides an introduction to Japanese candlesticks Ė what they are, how they are used in charting and the technical analysis of candlestick patterns.

Seeking Penny Stock Picks, Finding Amusing Material

This article covers the experience of seeking trust-worthy sources of information on penny stock picks where amusing and incredulous material was encountered.

Stock Trading Discipline

This article examines tips for stock trading discipline which when applied stringently as rules will lead to stock trading success.

Trading with a Trend Following System

This article provides insights into the thought process of a person engaged in learning about stock market trading.

Visit for
your photography needs.

Lake Sunrise

The highest tides in the world are in the Bay of Fundy, between Nova Scotia and New Brunswick in Canada.