Archive for August, 2008

How often does a correction in the stock market turn into a recession?

Thursday, August 21st, 2008
Matt Humberto asked:


I’m interested in “leveraged indexes” (ex., SSO) that imitate the general movement of the stock market with increased power. However, if the market plummets, I’m twice as in trouble as I’d normally be.

I know that predicting the market is a difficult if not impossible task, but are there any early “warning signs” to warn me of an upcoming recession?

Historically, how many times have corrections (10% drop in the market) turned into a true, full-blown recession (20% drop or more in the market)?

Thanks for your help!
Correction: By “recession” I meant a bear market. Sorry for the confusion of terms.

How far ahead of the economy is the stock market?

Thursday, August 21st, 2008
Bob Smith asked:


I’ve heard the stock market is an indicator of future economics. We’ve seen a little improvement in the market recently, indicating economic recovery, but when? Also, why does the stock market say it likes Hillary Clinton as VP?

Basically, I’m interested what messages the stock market sends in general.

What are a few stocks that are old and have beaten the stock market?

Tuesday, August 19th, 2008
Robert B asked:


AT&T is decades old but it’s history seems to be to do worse than the stock market.

I am interested in knowing one or more stocks that have traditionally beaten the market, especially if they are dividend stocks.

What are peoples’ outlook for the stock market for the first half of this year?

Sunday, August 10th, 2008
berman250 asked:


What do people think the stock market is going to do for the next few months? Does anyone think that the stock market is a little bit overvalued right now? Does anyone think that the stock market could come down a few percent or so, in the next few months? Or do people think that it will continue to grow like it did in 2006?

What are the best stock market sectors for 2006?

Sunday, August 3rd, 2008
KZ asked:


What sectors of stock market are the best for 2006? Drug, Energy, Tech or what? Will it be a good year for stock?

What percentage has the stock market dropped in the past month?

Saturday, August 2nd, 2008
jomedeiros asked:


My 401K has dropped 17% in the past month. Is that better or worse than the stock market average?