Just re-visiting the good ol' eyeball of the SPX over the last 5 or 6 years.
Could have used any benchmark to make the point, but SPX is The Benchmark, so why not.
Market returns were smooth and stable with a nice positive skew over most of the period (ah...for the good old days). We then hit a pothole in Feb 07 (first shot across the bow - China and the first subprimes), recovered and got going again at a faster pace, hit the Bear Stearns hedge fund closure in July and the Cramer rant heard around the world (second shot across the bow), over-corrected into October, and then lost control in 2008 (too many shots to innumerate).
We finally crashed and burned in October, and have been in purgatory ever since, but there is nothing like a few indulgences to give us hope.
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