Sunday, September 20, 2009

Bull Markets or Bull Shit?

The Stock Market Could Aptly be Described as Schizophrenic or Manic Depressive

(Consider the following as you read: Since 1965, U.S. economic growth has averaged 3.2 percent.)


On November 21, 1995 the DJIA closed above 5,000 (5,023.55) for the first time.

On March 29, 1999, the average closed above the 10,000 mark (10,006.78) after flirting with it for two weeks. This prompted a celebration on the trading floor, complete with party hats.

On May 3, 1999, the Dow achieved its first close above 11,000 (11,014.70)

On January 14, 2000, the DJIA closed a record high of 11,722.98; this record would not be broken until October 3, 2006.

March 20, 2001, Dow closes at 9720, the first time since 1992 it closed below the previous year's low.

September 17, 2001, the Dow closes at 8920 after experiencing it's biggest one day fall (685 points).

December 31, 2001, the DJIA closes at 10,021, up 21.7% from September low, but still down 7.2% for year.

By mid-2002, the average had returned to its 1998 level of 8,000.

On October 9, 2002, the DJIA bottomed out at 7,286.27, its lowest close since October 1997.

On October 31, 2002 — just 22 days later — the Dow is back up to 8397.

By the end of 2003, the Dow returned to the 10,000 level.

On January 9, 2006 the average broke the 11,000 barrier for the first time since June 2001.

In October 2006, four years after its bear market low, the DJIA set a new record for the first time in almost seven years, closing above 12,000 for the first time on the 19th anniversary of Black Monday in 1987.

On April 25, 2007, after months of volatility, the Dow closed above the 13,000 milestone for the first time.

On July 19, 2007, the average passed the 14,000 level, completing the fastest 1,000-point advance for the index since 1999. One week later, the Dow fell below the 13,000 mark, down about 10% from its highs.

On October 9, 2007, the Dow Jones Industrial Average closed at the record level of 14,164.53. Roughly on-par with the 2000 record when adjusted for inflation, this represented the final high of the roller coaster market.

On July 2, 2008, the Dow Jones Industrial Average closed at 11,215 — more than 20% below its October 2007 high. Two weeks later, it closed below the 11,000 mark for the first time since 2006. This was soon followed by a 500-point rally.

On November 20, 2008, the index closed at a new six-year low of 7,552. The market proceeded with a modest rise to close the year near the 9,000 level, still its worst annual performance since the early 1930s.

On February 20, 2009, the DJIA closed at a new 6 1/2-year low of 7,365.67.

On February 23, 2009, the DJIA closed at a 11 year low of 7114.78, last reached in October 1997.

On March 2, 2009, the DJIA dropped below 7,000 for the first time since 1997 — more than 50% below its October 2007 high.

By March 9, 2009, the DJIA reached a closing low of 6,547, its lowest close since April 1997, and had lost 20% of its value in only six weeks.

On March 6, 2009, the DJIA closed at 6469, it's lowest level since November, 1996.

On September 18, 2009, the DJIA closed at 9820, more than 50% above its March low.

No comments:

Post a Comment