Buy When Others are Fearful….

With all this bubble talk, I was curious to see how the stock market has performed compared with the unemployment rate. Not surprisingly, stocks have done better when unemployment is higher.

I looked at all the data from 1948 though 2012. When the unemployment rate was below 6%, stocks delivered a real annualized return of 3.19%. Below 4%, stocks have been nearly flat.

But when the unemployment rate was over 6%, the real return jumped to 14.68%.

Posted by on November 25th, 2013 at 10:05 am

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