| AUG 1990
Historical Patterns In The Long-Term Stock Market by James G. Arnold
Historical Patterns In The Long-Term Stock Market by James G. Arnold Stock markets have been around a long time, and historically, markets demonstrate some well-defined patterns. At some levels of averaging, one is even tempted to call the long-term market ""predictable."" I use statistical analysis to reduce more than 100 years of market data to a simple mathematical model. I've sought to identify the important patterns and examine their significance. Understanding the cycles and trends of ""markets past"" should allow you to become comfortable with the market. Prices do not stay in line with value, and that is precisely what makes a stock market. Sometimes they are too high and sometimes they are too low, but they do swing around value and—over the very long haul—prices will average out to value. Price is simply a number upon which buyer and seller agree. Value is what a thing is worth. Over the very long haul, value will be recognized. I use the Standard & Poor's 500 stock index for my model. Although this index measures high-capitalization stocks, it is value weighted and it does sample a reasonable fraction of the entire market. Data exist to trace the S&P 500 average back into the past century.
by James G. Arnold
Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99
To continue reading, sign-up for trial access to Traders.com and the S&C Archive — 37,000 pages of trading ideas!
After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.
Not a subscriber to Technical Analysis of
STOCKS & COMMODITIES magazine?
Click
here to subscribe, or request
a trial subscription.
Log-in now to view articles from the S&C Archive.
Your Subscriber ID is located at the top of your magazine label, highlighted here in red.
Your last name can be found on the second line, highlighted here in blue.
*If you have a company name on the label, that can also be used. It will appear below your name on the label.
If you do not have a Subscriber ID on your label, you can find it on your statement or renewal form.
For help locating your Subscriber ID number, please call us at 1-800-832-4642 or send an email to Survey@Traders.com. If sending an email, please include your name and mailing address.