In this article, I am going to compare the performance of the Dow Jones Industrial Average during the first three months of 2008 to the performance of the Dow Jones Industrial Average during the first three months of 2015. That’s because, when a company announces a share-repurchase program, it sends a strong signal that its management really thinks its stock is undervalued — so much so that it’s willing to put its money where its mouth is. So it’s bullish for the overall market when lots of companies are simultaneously announcing such programs.
On the other hand, the financial crisis of 2008 may have affected people’s expectations in qualitatively different ways than the more gradual changes witnessed in 2002, especially if people had different views about the condition of the economy in 2002 and in 2008.
You are right that Singapore market seems lag behind US and has been so long ,, while US market eg SP 500 is above 1 SD but our STI still below regression line ,,, is also very true that while US stock tank ,, whole world’s stock market will follow ,,,regardless of what your valuation level ,,, by that time…cheap will become cheaper !
A four-month bear market that took the market from 89 to the final low of 41 – a greater than 50% loss, and from a point where you have to believe many people felt things could not possibly get any worse; this decline was even greater than the more famous initial crash, and was the final capitulation.
In 1995, Rosario Mantegna and Gene Stanley analyzed a million records of the S&P 500 market index, calculating the returns over a five year period.26 Their conclusion was that stock market returns are more volatile than a Gaussian distribution but less volatile than a Lévy flight.