There is no right answer, since we have no idea ahead of time, but looking at the biggest S&P 500 declines over the last 35 years can shed some light on what would be typical for a deep decline. Some pretty interesting similarities here. I will update this chart as times goes on.
Chad Brand has been actively managing personal and
family investment assets since 1992. After the most recent bear market depleted investor
accounts between 2000 and 2002, the outrage among the individual investor community was
overwhelming. Most of the disgust was aimed at mutual fund managers and stock brokers who
had gotten carried away with technology stocks and had abandoned crucial investment
disciplines such as diversification and careful valuation analysis. In 2002, Brand
officially founded Peridot Capital Management in order to open his knowledge base and
portfolio management services to those outside of close friends and family.
Chad received his bachelor's
degree in finance from Washington University in St. Louis and has passed the NASD Series
65 Uniform Investment Advisor Examination. Prior to managing money full-time, he worked in
the corporate finance department at Express Scripts, Inc (Nasdaq:ESRX), an $18 billion per
year pharmacy benefits management company based in St. Louis, MO.
After correctly being bullish on
shares of Google when most others were unenthusiastic about the stock's investment merit,
Chad was featured in a front page story in The Wall Street Journal on March 2,
2006 which discussed the prospects for the internet search giant. Brand also speaks
regularly at the University of Missouri (Columbia) Business School, as a guest lecturer to
both undergraduate and MBA level students.
Chad was a weekly columnist for
StreetSideInvestor.com in the late 1990's and began publishing his own investment blog in
2004. In fact, The Peridot Capitalist has been named one of the best investment
blogs in the U.S. by several sources and Brand has done interviews with the likes of
Reuters, Bloomberg Newswires, Business Week, and Forbes. Chad's blog is
often referred to on various investment web sites including TheStreet.com, Yahoo! Finance,
Seeking Alpha, and Google Finance.
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