Article written by Prieur du Plessis, editor of the Investment Postcards from Cape Town blog.
Some perspective on the post-financial crisis rally comes via Chart of the Day, illustrating how much of the downturn that occurred as a result of the financial crisis has been retraced by each of the five major U.S. stock market indexes.
“For example, the Dow peaked at 14,164.53 back on October 9, 2007 and troughed at 6,547.05 back on March 9, 2009. The Dow currently trades at 12,229.29 — it has retraced 74.6% of its financial crisis bear market decline,” said the report.
“As the chart below shows, each of these five major stock market indices have retraced over 70% of their financial crisis decline. However, it is the Russell 2000 (small-cap stocks), the tech-laden Nasdaq, and the S&P 400 (mid-cap stocks) that have recouped nearly all or (in the case of the S&P 400) more than all of the losses incurred during the financial crisis.”
Source: Chart of the Day, February 11, 2011.
U.S. mid-cap index first to recoup all crisis losses was first posted on February 11, 2011 at 10:20 am.
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