Stock Charts Can Be Misleading To The Novice Chart Reader

When talking about the stock market, most financial advisors like to use charts to illustrate the past behaviour of the stock markets. Charts are a great vehicle to show how volatile the stock market can be year to year, and they also show the long-term returns of various stock markets. One such chart is called the “Morningstar Andex Chart”. There is a great deal of valuable information on this chart including past periods of inflation, recessions, interest rates, etc. However,...