Chart of the Day – The Dow Jones and Sideways Markets

July 30, 2012

I saw this on facebook this morning and thought I would share it. This particular graphic comes from a JP Morgan Report. Take a look at how long sideways markets can last:

Click on graphic to see a larger version.

• 1906 – 1924

• 1937 – 1949

• 1966 – 1982

• 2000 – present

Bottom line: they can last a long time.

Granted, these are price returns, which do not include dividends. Nor do they factor in dollar cost averaging, which most of us are utilizing as we save for retirement. So, it’s not all bad (I hope).

One response to Chart of the Day – The Dow Jones and Sideways Markets

  1. If the average length of sideways-markets holds up, then we should see another uptick starting in 2015. We’ve already had our lost decade.