Bear Stearns failed mid-March 2008. Despite this, on March 27, 2008 Mark Hulbert gave serious weight to Richard Band's prediction of an "uptrend that could carry the blue chip indexes to all-time highs by late 2008 or early 2009. Dow 16,000 here we come!" http://www.marketwatch.com/story/dow-heading-for-16000-richa...
Following this advice, you would have bought near the top of the market, when what you really want to do is buy low and sell high...
Hulbert is probably the most knowledgeable student of DOW history. He knows that what happens to the DOW in the short run is mostly meaningless noise. He should take his own advice:
"Some psychological researchers, for example, have presented series of random numbers to human subjects and then asked them whether there are any patterns in the data. Overwhelmingly, the subjects claim to have detected patterns in the data.
"We should keep this research in mind as we watch the stock market day in and day out. We may think we have detected a pattern, but that doesn't mean that it really exists."
And on April 18, 2008, Hulbert said "The Dow Theory appears poised to go on a buy signal..." http://www.marketwatch.com/story/dow-theory-poised-to-trigge...
Following this advice, you would have bought near the top of the market, when what you really want to do is buy low and sell high...
Hulbert is probably the most knowledgeable student of DOW history. He knows that what happens to the DOW in the short run is mostly meaningless noise. He should take his own advice:
"Some psychological researchers, for example, have presented series of random numbers to human subjects and then asked them whether there are any patterns in the data. Overwhelmingly, the subjects claim to have detected patterns in the data.
"We should keep this research in mind as we watch the stock market day in and day out. We may think we have detected a pattern, but that doesn't mean that it really exists."
Quoted from: Market Watch (April 3, 2007) http://www.marketwatch.com/story/dont-read-too-much-into-sto...