Friday, August 20, 2010

More on the 16/18/20

The 16/18/20 method was detailed previously (go here) at EconomPic. At the time, we showed the performance of those periods that were to be avoided (they underperformed historically).

Below, we show the performance in terms of real change of the S&P 500 index during periods deemed "attractive" based on the 16/18/20 method.

How'd they do?

Quite well.

Source: Irrational Exuberance