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Strategies & Market Trends : Z Best Place to Talk Stocks

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To: Kelvin Taylor who wrote (50374)1/6/2004 1:41:01 PM
From: Kelvin Taylor  Read Replies (1) of 53068
 
Market surges occur about every 5 years

Arthur M. Louis Sunday, January 4, 2004

Q: Last year was a terrific one for the stock market, with the Standard & Poor's 500 rising about 25 percent. How often does that happen?

A: More often than you might suppose -- roughly once every five years during the past seven decades.

The last time the S&P 500 rose at least 25 percent was in 1998, toward the end of the greatest bull market in history.

The 2003 surge was gratifying, but I don't suppose many investors are doing cartwheels. As I'm sure you'll recall, the previous three years were all severe downers, and taken together constituted one of the worst bear markets in history. Big gains are often preceded by big declines.

Even after last year's peppy performance, the market remains about 30 percent below the all-time high reached in March 2000.
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