When all you read is gloom, turn here for a much different perspective.

Friday, March 6, 2009

The Stock Market Chart for 2009 - 2010

Here you go, the stock market chart for 2009 to 2010...

Click chart to enlarge:

(Source: Google Finance)

You have heard us reminisce about 1974 in articles and comments.
And you've read many, many "scary charts" in the last several months.
And you have no doubt been asked, "Are you scared?"
For me, I remember 1974. When you've been scared once and lived to see a much brighter day, it makes it much easier to endure and face fear the next time around.

I offer the chart above as a reminder that we have been through stock market times like this before and there is no doubt in my mind that better stock market times are just around the corner.

7 comments:

  1. Except the market has dropped below 6480 which takes it completely off the bottom of your chart.

    ReplyDelete
  2. Anonymous,

    Thanks for reading and for your close inspection of the charts of the two stock market "bear dips."

    The google tool I used was not precise enough for me try and align the worst delta for 1974-1975 either. The worst "peak to trough" during that down turn was about 48% for the S&P500 from 1/11/73 to 10/3/74. (I only show a 43% drop on the 70s DOW chart.) The chart for the mid-70s as well as for the recent bear market is to demonstrate that -- for some of us -- we have already experienced a bear like this before. (Many of us just forgot.) As you point out, this bear is more extreme on the DOW than the charts show -- but as I've noted in this comment -- the bear of 1974 was more actually extreme than its chart suggests as well)

    The point is: for some of us, we've already survived a bear in the 45-50% range. And even tho their were many preaching "the end of the world is near" back in the mid-70s, the country actually prospered quite nicely in the ensuing years. (With other major peaks and troughs in the major stock indexes along the way... which reminds me, this is actually my third -50% bear market... how could I forget 3/24/2000 to 10/09/2002? That S&P 500 bear? -49%)

    Thanks again for reading and your comment.

    GNE

    ReplyDelete
  3. I would advocate looking systemically and holistically at the entire economy - that is what GNE is doing with this blog.
    There are multiple metrics to look at the state of the economy. CNBC and others have a laser like focus on the stock market. If it bleeds, it leads as they say.
    It aint great, but, as GNE is doing you can find good news every single day news that literally confounds and mystifies the "experts" (increase in retail, etc) - if you care to look for it. If you don't, then, by all means live with the anxiety and fear. I choose consciously not to be afraid.
    "Tuesday Ramblings"

    "Tuesday Ramblings"

    ReplyDelete
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    ReplyDelete
  5. Well spotted, well said - new reader from here on out. Well done. 3 days before the low. Wish I saw this earlier.

    ReplyDelete
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    ReplyDelete

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