Where Do Stocks Go From Here?

By on March 18, 2015

It’s all most folks want to know…

After six years of a bull market – and 200% gains – what’s next?

031815-DRE-6-year-rolling-returns

Michael Batnick of Ritholtz Wealth Management has crunched the numbers. And he’s come up with some fascinating answers:

1) The average six-year return is 85%. The recent 200% winning streak puts us way above that average.

2) There have been 54 periods in history when six-year returns were greater than 200%. The average return over the following three years was 9%. This compares with an average historical three-year return of 38%.

3) Following six-year runs of 200% or more, investors have suffered negative three-year returns 35% of the time. Overall, on average investors have suffered negative three-year returns just 17% of the time.

P.S. When the merry-go-round finally stops, it could cause massive destruction of wealth. Be sure to protect your profits now, while the going is good. Find out how in the special report Bonner & Partners senior analyst Braden Copeland has put together. Start protecting your profits here now.