Bear Market Analysis.. very good chart
3.bp.blogspot.com
It took just 13 months for the worst bear market since the 1930s to erase all the gains investors made in the five-year bull market that ended in the fall of 2007.
Thursday, a day after analysts warned that the next line in the sand for plunging stocks would be the lows hit in the 2002 bear market, the Standard & Poor's 500 sliced right through the 777 trough hit on Oct. 9, 2002, and closed down 54 points, or 6.7%, at 752.44 — its lowest close since April 1997. It's 51.9% off its high.
The low on the Dow Jones industrials this morning was 7,774.58, compared with the closing low of 7,286.27 at the bear-market bottom on Oct. 9, 2002.
The Nasdaq composite, which hit 1,345.57 this morning, would have to fall to 1,114.11 to take back all of its 2002-2007 advance.
The sad fact is, this has been a lost decade for stocks -- not just a lost six years. The Dow, the S&P and the Nasdaq all are in the red since Dec. 31, 1999. |
