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CAN YOU BE THE NEXT MARKET GURU?
A Historical Stock Jaunt: 1920's through WWII
The following lesson may give you an idea of how difficult it is to time the stock market. You will be given the chance to make decisions about investing in stocks at various times over the last 80 years. Even if you know some history of the U.S. stock market, you will likely still find it difficult to choose correctly every time.
In this lesson you will:
Analyze stock market returns within a historical context.
Explain the difference between a "buy and hold" versus a "market timing" strategy.
Explain why long-term investment horizons are important to investors.
Explain how certain key statistics (P/E ratio, Dividend Yield, and Interest rates) are used in estimating stock values.
Click here to begin.