One year ago today, the market’s harrowing 17-month slide hit bottom. Since then, the market has rebounded nicely, with major indexes gaining more than 60%. Some say, the stocks are still poised for another strong year, even after their spectacular run since March 9, 2009.
Rebound since March 9, 2009 (12 month chart):
The Standard & Poor’s 500 is up 68.3 percent in the past 12 months, while the Dow is up 61.2 percent and the Nasdaq has soared 83.8 percent. It has been a bull rally of historic proportions … but in this case, the bull is in the eye of the beholder.
The major averages are still off a full 25 percent from their all-time highs of October 2007 and it would probably be unwise to expect another 2009-size rally to restore the portfolios to their former values.
So, still a long way to go to reach October 2007 levels (36 month chart):