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Copyright Kevin A. Tuttle 2007 3

Data Source: Michael Alexander, Stock Market Cycles 4

1 10 Year Treasury Yield

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Market Bull Range-Bound Bear

Economic Growth Good (Average) Good (Average) Bad

Starting Valuation (P/E) Low High High

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Range-Bound markets started at above average valuations!

Range-Bound ended at below average valuations!

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Source: February 4th, 2008, Barrons article Down to the Last Drop of Profit Growth by Vitaliy Katsenelson
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GD P

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Source: February 4th, 2008, Barrons article Down to the Last Drop of Profit Growth by Vitaliy Katsenelson
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