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Wednesday, September 2, 2009

U-turn is path to recovery profits ***** must Read

"This might seem backward, but it's happened many times in the past. Some of the strongest spans in the market have come during the weakest periods of economic growth. According to the BCA research, here's how it breaks down: Quarters in which growth in gross domestic product has clocked in at a terrible negative 2% to negative 3% have led to the strongest returns in the Standard & Poor's 500 Index ($INX): around 28% on average in the ensuing 12 months. Quarters of negative-2% to negative-1% GDP growth have led to one-year returns of around 19%. Quarters of negative-1% to 0% growth have led to growth of around 8%. Quarters of 1% to 2% growth have led to 2.5% annual returns, and quarters of 2% to 3% growth have led to slightly negative 12-month returns."

www.stockcaps.blogspot.com

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