Tremendous Gains Since 2009

Tremendous Gains Since 2009

A look at where stocks were in 2009 and how they have performed since.

Provided by Tyler Peachey

Where were you on March 9, 2009? Do you remember the headwinds hitting Wall Street then? When the closing bell rang at the New York Stock Exchange that Monday afternoon, it marked the end of another down day for equities. Just hours earlier, the Wall Street Journal hadasked: “How Low Can Stocks Go?”1

The Standard & Poor’s 500 stock index answered that question by sinking to 676.53, even with mergers and acquisitions making headlines. The index was under 700 for the first time since 1996. The Dow Jones Industrial Average tumbled to a closing low of 6,547.05.2

To quote Dickens, “It was the best of times, it was the worst of times.” It was the bottom of the bear market – and it was also the best time, in a generation, to buy stocks.2

The next day, a rally began. Buoyed by news of one major bank announcing a return to profitability and another stating it would refrain from further government bailouts, the Dow rose 597 points for the week ending on March 16, 2009. On March 26, the Dow settled at 7,924.56, more than 20% above its March 9 settlement. The bull market was back.3

This bull market might well continue. Should the bull market keep rolling along, it may reach yet another milestone in a matter of weeks.

March could mark the bull market’s eleventh year. Making it that far would add to its record length, but it is by no means guaranteed. There is a history of a weaker market during January of an election year. This could lead to a correction, which is a decline of at least 10% from a recent high. Perhaps, but a correction is not necessarily the end of the bull market. In fact, such a correction would not be the first for this specific bull market.4,5

The gains of the current bull market did not come without turbulence, and stocks in no way turned into a “sure thing.” The risk inherent in the market is still substantial along with the potential for loss. The lesson this long bull market has taught is simply that the bad times in the stock market may be worth enduring. Good times may replace those bad times more swiftly than anyone can anticipate.

Tyler Peachey may be reached at 620-245-1130 or tyler.peachey@lpl.com.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Indices do not incur management fees, costs and expenses, and cannot be invested into directly.

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Citations.

1 – forbes.com/2010/03/06/march-bear-market-low-personal-finance-march-2009.html [3/6/10]

2 – thestreet.com/investing/stocks/bull-market-10th-anniversary-14891697 [3/10/19]

3 – tinyurl.com/yyhbtfw8 [4/2/19]

4 – marketwatch.com/story/theres-plenty-of-life-left-in-this-bull-market-for-stocks-2020-01-08 [1/8/20]

5 – investopedia.com/market-milestones-as-the-bull-market-turns-10-4588903 [10/16/19]