Stock Market Comeback

2009 has showed us how fast stocks can recover.

Have you looked at the market lately? Hopefully, you haven't gotten out of it. This has been a encouraging spring for the stock market investor. Some statistics:

An important technical milestone.

Between the March 9 lows & the finish of May trading, the Dow Jones Industrial Average gained 29.83%, the S&P 500 35.86%, & the NASDAQ 39.86%.
March, April & May 2009 represented the best 3-month stretch for the Dow since November 1998, the best 3-month stretch for the NASDAQ since December 2001, & the best 3-month stretch for the S&P 500 since June 1933.

These gains are positively historic. The pessimist will say definite, this has been a historic bear market; you are going to see giant ascents & descents. The optimist will recommend that things are turning positive.

A lot for doom & gloom..


Do you keep in mind back in January when analysts were worried about stocks losing another 20-40% this year? The S&P 500 sank ten.9% across the first 12 trading days of 2009, its poorest start to a year ever. It was time to haul out that elderly Wall Street saying: as the first few days of trading go, so goes the year.

On June one, the S&P 500 crossed over its 200-day moving average - a positive indicator. The last time this happened: May 2008.

However, the year has not gone that way. They have half a year to go, of coursework - but as this is written, the NASDAQ is up double digits for 2009, the S&P 500 is positive for the year, & the Dow is on the verge of moving in to positive territory.

Is a bull market emerging?

Some see a kid bull jogging right now. In May, analysts at JPMorgan Chase introduced their view that they were in the second month of a brand spanking new bull market. They noted that if March 9 was the bottom (& they actually went out on a limb & called a March 9 bottom), then the spring 2009 rally was turning out to be of the longest rallies from a trough in history.

On the other side of the coin, you could argue that this is an odd bear market rally in an odd bear market - although they have already seen a bunch of outstanding rallies & plunges over the last several months.

 psychologically lovely milestone would be for the Dow to get back to the 9,600 level. On November four, 2008, it closed at 9,625.28 after a 305-point rally on Election Day.The next day, the Dow fell below 9,200 - & it has not been above 9,200 since, though it did top 9,000 one time in early January.

If this is the new bull market, you are not missing it. & if it is not, the markets definitely have improved from earlier this year. In stock market investing, patience & perseverance are essential. Those who stay the coursework are often thankful they did.

Still in stocks? Give yourself a hand.

Historicallyin the past, rising stock markets have often been indicators of waning recessions. Plenty of analysts think the economy could improve notably in the approaching months. Is this a nice moment to review your portfolio? You may need to speak to a financial advisor.