David Templeton, at Disciplined Approach to Investing, presents evidence showing that when the market is in the bottoming process, it’s important to stay invested so we don’t miss those days where the market gaps higher on the way to recovery. 
– Ilene
The Stock Market Improves Before The Economy
Jeremy Siegel, a professor at The Wharton School, notes in his book,
Stocks for the Long Run,…of the 42 recessions from 1802 to the present (2002), 39 of them, or 93 percent, have been preceded (or accompanied) by declines of 8 percent or more in the total stock returns index. Historically, a bottom in the market has led a trough in the business cycle by about five months. [emphasis added]
Investors will have little luck predicting market upturns and downturns because turning points are usually identified months [after] they’ve occurred, not beforehand. In the meantime, they’ll miss out on significant gains. From the bottom of the market to the end of the recession, the stock market has risen an average of about 24 percent (emphasis added).
Source: BetterInvesting Magazine
Source:
Don’t Wait for the Clouds to Break ($)
BetterInvesting Magazine
By: BetterInvesting Editors
September, 2008
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