We finally had that “Breakout to the Upside” as the Dow broke through that 20,000 level, dragging along the S&P 500 which closed the week at 2294. Reflecting back, the Dow crossed 10,000 on 29 March 1999. Using the “Rule of 72”, that equates to about a 4 percent annualized return over the last 18 years (72/18 = 4). The steep market drops in 2000 and 2008 adversely effected those Dow returns. Fortunately, in 2008, we averted those losses and had a positive return by investing in the G and F funds. So where do we go from here? Right now my analysis still is bullish, and we remain 100 percent allocated to equity funds.
We finally had that “Breakout to the Upside” as the Dow broke through that 20,000 level, dragging along the S&P 500 which closed the week at 2294. Reflecting back, the Dow crossed 10,000 on 29 March 1999. Using the “Rule of 72”, that equates to about a 4 percent annualized return over the last 18 years (72/18 = 4). The steep market drops in 2000 and 2008 adversely effected those Dow returns. Fortunately, in 2008, we averted those losses and had a positive return by investing in the G and F funds. So where do we go from here? Right now my analysis still is bullish, and we remain 100 percent allocated to equity funds.