Has the Market Really Bottomed Out?

If one takes a look at the overall performance of the market, the recent low in the market was roughly equal to the low point of the recession of 2001-2002. This could be a signal that the market has reached its bottom and may turn upward. Other numbers such as the unemployment rate suggest that we are still in a recession; however, much like the seasons there is a time lag for economic recovery. Hopefully we have reached the natural bottom of our market and can begin to rebuild our economy. It will take at least a year before consumer confidence will be restored. An interesting question to ask is if this truly is the bottom of the market, isn't it a great time to invest. Obviously there is risk. The market could plunge to levels before the 90's which would be a disaster. However, the possible reward if the market returned to its previous high would be outstanding. I'd also like to point out that I don't believe any of the "bailouts" were responsible for stopping the downward turn in our economy. I believe we hit the low point naturally due to balance. So we'll see if I'm right in a year and I'll write another article that declares me a prophet! If I'm wrong no one will remember and I will prove my status as a no talent ass clown:)