The chart above says it all. In our nearly five year bull market, every time the Nasdaq 100 tested the 50 week average, or dipped temporarily below it, it was a terrific buying opportunity. The question today: Is this time different? As we roll into the new year, there is plenty of fear and skepticism building, as evidenced by the put/call ratio, vix level, newsletter sentiment, etc etc....and history has shown that it usually rewards investors who buy when others are running for the exits. Let's see if history repeats itself. Note, the spring 2006 decline was scary, but by the time you acted, it was probably too late to sell. We could yet have a sudden 5 or 10% more downside, but we could easily reverse quickly and sprint higher once again. So, how are you going to play it? Good luck.
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