One thing for sure ,is people`s short memories can be to our advantage. Not one person has mentioned that the UK Index was at 7000 in 1999.
It`s a strange fact that people have such selective and short memories.One should always try one`s best to avoid such short-termism.Here`s the reminder of returns ,since 1929 ;
Now, I was assuming we are following the 1974 recession . But , we may be following a 1951 type correction .Only time will tell on that one .
Interestingly enough, as the chart shows gold and silver have also nowhere near reached their optimum prices ,in the 2000`s.
Back to the stock market.
Early 2013,has seen a rise and the spring if the usual occurs will see a fall.
While this usual habit occurs do not forget to ponder the long term targets ,you have in mind.Remember the FTSE hit 7000 in 1999 . Well today that equates to FTSE 15,000 at the peak.Thus one can safely assume stock indices in january 2013 are undervalued.
Itself repeats history.