Monday, August 29, 2011

Crossing the S&P 500's Rubicon v.27

Here's a list of dates when the S&P 500 crossed above the 1200 level (at the close compared to the previous trading day's close).

1. 12/21/1998
2. 4/18/2001
3. 7/12/2001
4. 7/26/2001
5. 12/14/2004
6. 12/21/2004
7. 2/4/2005
8. 2/11/2005
9. 2/24/2005
10. 6/1/2005
11. 6/9/2005
12. 6/13/2005
13. 6/28/2005
14. 7/5/2005
15. 7/8/2005
16. 10/31/2005
17. 9/16/2008
18. 9/18/2008
19. 9/25/2008
20. 4/14/2010
21. 4/20/2010
22. 4/29/2010
23. 5/3/2010
24. 11/4/2010
25. 12/1/2010
26. 8/15/2011
27. 8/29/2011

The wise men apparently presented just three gifts, but the stock market has presented three gifts raised to the third power! 3^3! That's 27 divine gifts!

Turning back now would be an insult to the "powers" that be (TPTB)!

August 22, 2011
Who Will Benefit From the Slowing Economy

Some analysts think stocks, for instance--which have fallen 17 percent from their April peak and are down about 10 percent for the year--are undervalued, with smart investors gradually adding to their stock portfolios over the next several months.


A chronically anemic economy will probably keep the value of the dollar low against other major currencies, which would be a boon for exporters and anybody selling goods priced in dollars to foreigners.

Nothing says smart like investing in chronically anemic economies. The proof can be found in the 27 rubicon crossings!

See Also:
Crossing the S&P 500's Rubicon v.23
Crossing the S&P 500's Rubicon v.24 (Musical Tribute)
Crossing the S&P 500's Rubicon v.25
Crossing the S&P 500's Rubicon v.26
Sarcasm Disclaimer

Source Data:
Yahoo: S&P 500 Historical Prices


Stagflationary Mark said...

My blog received the following comment on an old thread and I just have to share my elation.

"This is a good posting, I was wondering if I could use this write-up on my website, I will link it back to your website."

Blogger felt it was SPAM. That exact quote can be found 950,000 times on the Internet but I'm sure it is just a coincidence!

You may be curious. Which post of mine triggered such worthy praise?

Gold Porn and Instant Gratification

This sure is a mystery. Gold? Instant gratification? What am I missing here? Hahaha!

Mr Slippery said...

Nothing says smart like investing in chronically anemic economies. The proof can be found in the 27 rubicon crossings!

The long term stock investors must be 27 times smarter than me. OK, I didn't get completely out of stocks until 2007 so they are only 11 times smarter than me :)

The Rubicon has meant a nice short opportunity, for the chronically anemic. I will make a decision in the morning.

Stagflationary Mark said...

Mr Slippery,

Getting out in 2007 is amazingly smart. That's far better than me.

I jumped the gun a bit. I got out after just 4 rubicon crossings back in the fall of 2004.

I missed 23 more crossings!!! D'oh! ;)

Stagflationary Mark said...

Just to make this clear, I sold a slightly below the rubicon line.

That said, there has been 7 years of inflation. I'm not exactly complaining about what my nest egg has done elsewhere.

Mr Slippery said...

More luck than smart. I knew something was very wrong, but I could not explain it then. I've been very defensive since then with small but steady gains. I am sitting on nice gold profits now and will hopefully time the exit right.

Stagflationary Mark said...

Mr Slippery,

Your anecdotal evidence adds new complexity to the panic first theory.

The ideal time to panic would seem to be after some people have panicked but before the majority does. Only then can you maximize profits, lol.

Now let's try to come up with a plan that would allow us to sleep well.

The key here is to remain more ignorant than those who panic first, but far less ignorant than the masses! That's the sweet spot! Hahaha! ;)