Everyone Should See This Chart

By Bryan Rich

December 11, 5:00 pm EST

We’ve talked about the market volatility the past few days.

Let’s take a look at a chart of the many swings in stocks for the year.

You can see we’ve had seven significant declines this year.  A clear observation in this chart is that the declines are fast.  As they say, the market goes up on an escalator and down in an elevator.

We’ve had a 12% decline over six days.  A 5% decline in three days.  A 9% decline in thirteen days. An 8% decline in six days (to open October).  A 7.8% decline in eight days. A 6.8% decline in ten days.  And, this recent, 8.2% decline in five days (assuming yesterday was the bottom).

So, the seven declines of the year have averaged 8%, over a period of seven days. This argues that we probably have, indeed, seen the low on this recent sharp slide.

And that leaves us, at today’s close, with a stock market trading at 15 times earnings — among the cheapest valuation we’ve seen only two times in the past 26 years.

What stocks do you buy?  Join me here to get my curated portfolio of 20 stocks that I think can do multiples of what broader stocks do, coming out of this market correction environment.