stock market

Home » stock market

Putting yesterday’s financial disaster into perspective

If we’ve learned anything over the last couple years, it should be that the stock market is highly volatile. The stock market does not always go up. The stock market does not always guarantee great returns. For those who can afford the risk (not average Americans), the stock market can be a great place to speculate and make money. In my opinion, Americans need to push to get their retirements placed back into safe pensions. The volatility of the stock market guarantees that are 401(k)s are at more risk than most of us are comfortable with.

From Calculated Risk:

The table below shows the largest down days on the S&P 500 since 1950.

Largest S&P 500 One Day Percentage Declines since 1950
Date Percent Decline Close Previous Close Six Months Later
1 10/19/1987 -20.5% 224.84 282.7 15.3%
2 10/15/2008 -9.0% 907.84 998.01 -4.7%
3 12/1/2008 -8.9% 816.21 896.24 15.7%
4 9/29/2008 -8.8% 1106.42 1213.27 -28.8%
5 10/26/1987 -8.3% 227.67 248.22 15.3%
6 10/9/2008 -7.6% 909.92 984.94 -5.9%
7 10/27/1997 -6.9% 876.99 941.64 23.7%
8 8/31/1998 -6.8% 957.28 1027.14 28.0%
9 1/8/1988 -6.8% 243.4 261.07 11.7%
10 11/20/2008 -6.7% 752.44 806.58 17.9%
11 5/28/1962 -6.7% 55.5 59.47 10.6%
12 8/8/2011 -6.7% 1,119.47 1199.38
13 9/26/1955 -6.6% 42.61 45.63 14.1%
14 10/13/1989 -6.1% 333.65 355.39 3.2%
15 11/19/2008 -6.1% 806.58 859.12 10.1%
16 10/22/2008 -6.1% 896.78 955.05 -5.0%
17 4/14/2000 -5.8% 1356.56 1440.51 -2.0%
18 10/7/2008 -5.7% 996.23 1056.89 -18.1%
19 6/26/1950 -5.4% 18.11 19.14 10.0%
20 1/20/2009 -5.3% 805.22 850.12 18.1%
21 11/5/2008 -5.3% 952.77 1005.75 -4.8%
22 11/12/2008 -5.2% 852.3 898.95 4.8%
23 10/16/1987 -5.2% 282.7 298.08 -8.1%
24 11/6/2008 -5.0% 904.88 952.77 2.7%
25 9/17/2001 -4.9% 1038.77 1092.54 12.2%
26 2/10/2009 -4.9% 827.16 869.89 21.8%
27 9/11/1986 -4.8% 235.18 247.06 23.4%
28 8/4/2011 -4.8% 1200.07 1260.34
29 9/17/2008 -4.7% 1156.39 1213.6 -31.3%
30 9/15/2008 -4.7% 1192.7 1251.7 -36.8%
31 3/2/2009 -4.7% 700.82 735.09 47.1%
32 2/17/2009 -4.6% 789.17 826.84 27.2%
33 8/10/2011 -4.4% 1,120.75 1172.53
34 4/14/1988 -4.4% 259.75 271.58 7.0%
35 3/12/2001 -4.3% 1180.16 1233.42 -8.0%
36 4/20/2009 -4.3% 832.39 869.6 31.7%
37 3/5/2009 -4.3% 682.55 712.87 46.2%
38 11/30/1987 -4.2% 230.3 240.34 10.0%
39 11/14/2008 -4.2% 873.29 911.29 4.2%
40 9/3/2002 -4.2% 878.02 916.07 -6.4%
41 10/2/2008 -4.0% 1114.28 1161.06 -25.1%
42 10/25/1982 -4.0% 133.32 138.83 20.3%

By |2011-08-11T12:35:50-04:00August 11th, 2011|Economy|Comments Off on Putting yesterday’s financial disaster into perspective

Wall Street sends Conservatives a clear message

Yesterday the Stock Market took a nosedive. Here’s what I know. US government spending equals 25% of GDP. Conservatives are cutting government spending. GDP will drop. The economy has to slow. So we take an already anemic economy and slow it even further. Maybe, just maybe, when the economy is slow, government spending is good?

From NYT:

Stock markets continued to slide Friday in Europe following sharp sell-offs in Asia and on Wall Street, as pessimism about weak growth in the United States combined with longstanding worries about debt levels in the euro area.

Futures on the Standard & Poor’s 500 were also down, indicating another weak opening in New York.

Investors continued to pull funds away from stocks — including in emerging markets despite their solidly growing economies — and shifted instead into the perceived safety of assets like U.S. Treasury bonds, German bunds and precious metals. (more…)

Largest S&P 500 One Day Percentage Declines since 1950
Date Percent Decline Close Previous Close Six Months Later
1 10/19/1987 -20.5% 224.84 282.70 15.3%
2 10/15/2008 -9.0% 907.84 998.01 -4.7%
3 12/1/2008 -8.9% 816.21 896.24 15.7%
4 9/29/2008 -8.8% 1,106.42 1,213.27 -28.8%
5 10/26/1987 -8.3% 227.67 248.22 15.3%
6 10/9/2008 -7.6% 909.92 984.94 -5.9%
7 10/27/1997 -6.9% 876.99 941.64 23.7%
8 8/31/1998 -6.8% 957.28 1,027.14 28.0%
9 1/8/1988 -6.8% 243.40 261.07 11.7%
10 11/20/2008 -6.7% 752.44 806.58 17.9%
11 5/28/1962 -6.7% 55.50 59.47 10.6%
12 9/26/1955 -6.6% 42.61 45.63 14.1%
13 10/13/1989 -6.1% 333.65 355.39 3.2%
14 11/19/2008 -6.1% 806.58 859.12 10.1%
15 10/22/2008 -6.1% 896.78 955.05 -5.0%
16 4/14/2000 -5.8% 1,356.56 1,440.51 -2.0%
17 10/7/2008 -5.7% 996.23 1,056.89 -18.1%
18 6/26/1950 -5.4% 18.11 19.14 10.0%
19 1/20/2009 -5.3% 805.22 850.12 18.1%
20 11/5/2008 -5.3% 952.77 1,005.75 -4.8%
21 11/12/2008 -5.2% 852.30 898.95 4.8%
22 10/16/1987 -5.2% 282.70 298.08 -8.1%
23 11/6/2008 -5.0% 904.88 952.77 2.7%
24 9/17/2001 -4.9% 1,038.77 1,092.54 12.2%
25 2/10/2009 -4.9% 827.16 869.89 21.8%
26 9/11/1986 -4.8% 235.18 247.06 23.4%
27 8/4/2011 -4.8% 1,200.08 1,260.34
28 9/17/2008 -4.7% 1,156.39 1,213.60 -31.3%
29 9/15/2008 -4.7% 1,192.70 1,251.70 -36.8%
30 3/2/2009 -4.7% 700.82 735.09 47.1%
31 2/17/2009 -4.6% 789.17 826.84 27.2%
32 4/14/1988 -4.4% 259.75 271.58 7.0%
33 3/12/2001 -4.3% 1,180.16 1,233.42 -8.0%
34 4/20/2009 -4.3% 832.39 869.60 31.7%
35 3/5/2009 -4.3% 682.55 712.87 46.2%
36 11/30/1987 -4.2% 230.30 240.34 10.0%
37 11/14/2008 -4.2% 873.29 911.29 4.2%
38 9/3/2002 -4.2% 878.02 916.07 -6.4%
39 10/2/2008 -4.0% 1,114.28 1,161.06 -25.1%
40 10/25/1982 -4.0% 133.32 138.83 20.3%

Nice chart from Calculated Risk.

By |2011-08-05T08:38:33-04:00August 5th, 2011|Economy|Comments Off on Wall Street sends Conservatives a clear message

4 questions for Republicans

Questions (from the Daily Kos):

  1. What was the average monthly private sector job growth in 2008, the final year of the Bush presidency, and what has it been so far in 2010?
  2. What was the Federal deficit for the last fiscal year of the Bush presidency, and what was it for the first full fiscal year of the Obama presidency?
  3. What was the stock market at on the last day of the Bush presidency? What is it at today?
  4. Which party’s candidate for speaker will campaign this weekend with a Nazi reenactor who dressed up in a SS uniform?

Answers:

  1. In 2008, we lost an average of 317,250 private sector jobs per month. In 2010, we have gained an average of 95,888 private sector jobs per month. (Source) That’s a difference of nearly five million jobs between Bush’s last year in office and President Obama’s second year.
  2. In FY2009, which began on September 1, 2008 and represents the Bush Administration’s final budget, the budget deficit was $1.416 trillion. In FY2010, the first budget of the Obama Administration, the budget deficit was $1.291 trillion, a decline of $125 billion. (Source) Yes, that means President Obama has cut the deficit — there’s a long way to go, but we’re in better shape now than we were under Bush and the GOP.
  3. On Bush’s final day in office, the Dow, NASDAQ, and S&P 500 closed at 7,949, 1,440, and 805, respectively. Today, as of 10:15AM Pacific, they are at 11,108, 2,512, and 1,183. That means since President Obama took office, the Dow, NASDAQ, and S&P 500 have increased 40%, 74%, and 47%, respectively.
  4. The Republican Party, whose candidate for speaker, John Boehner, will campaign with Nazi re-enactor Rich Iott this weekend. If you need an explanation why this is offensive, you are a lost cause.
By |2010-11-02T09:51:34-04:00November 2nd, 2010|Bush Administration, Obama administration, Party Politics|Comments Off on 4 questions for Republicans
Go to Top