Professional Documents
Culture Documents
2010 DATA 2nd
2010 DATA 2nd
52 Week High---
52 Week Low---
Jan
F&Oexpiary--Jan'10#
Feb
F&Oexpiary--Feb'10#
Mar
WEEK 11
-0.1
0.1
WEEK 12
F&Oexpiary--Mar'10#
WEEK 13
WEEK 14
WEEK 15
WEEK 16
WEEK 1
52 Week High---
52 Week Low---
WEEK 1
WEEK 2
WEEK 3
WEEK 4
F&Oexpiary--Jan'10#
WEEK 5
spl. trade
WEEK 6
WEEK 7
WEEK 8
Rly Budget
F&Oexpiary--Feb'10#
Union Budget
WEEK 9
WEEK 10
F&Oexpiary--Mar'10#
UNITECH
RELIANCE
IFCI
ICICIBANK
SUZLON
ISPATIND
DLF
TATASTEEL
HDIL
SBIN
SATYAMC
RNRL
JPASSOCIA
GVKPIL
RELCAPITAL
T-Day of 2 DATE Change
Av of Nifty & Sense NIFTY
6440.08 Intra-day open high low close
1265.47 Highest↑5.79 on 4/5/2009
666.79 Lowest↓3.21 on 2/3/2009 ↓3.98 on 27/01/2010
12
139
first rest
172 166
179 156
10 Membership No. 050652 Name KUNDU TAPAS , FCA Gender MALE Status ACTIVE Address 7C KIRAN SANKAR RO
10
9 Listening is such a simple act. It requires us to be present, and that takes practice, but we don'
6
10
7
5
9
3
7
9
0
3
5
2
SENSEX
open
17473
17726
17719
17701
17603
326+85=411
17724
17534
17368
17525
17604
236+263=499
17554
17650
17486
17474
16978.4
158+946=1104
16847
16708
16317
16253
18+877=895
16339
16368
16210
16500
16222
15807
194+632=826
15931
15940
16042
15928
287+264=551
16186
16042
16229
16421
16256
328+140=468
16191
16213
16218
16264
16255
478+23=501
16438
16778
17013
16988
668+0=668
17034
17089
17072
17087
17176
249+0=249
17166
17169
17389
17492
17531
434+104=538
17481
17422
17458
17558
104+240=344
17640
17703
17602
17555
149+155=304
17693
17940
17915
17950
17716
355+0=355
17874
17831
17804
17645
62+341=403
VE Address 7C KIRAN SANKAR ROY ROAD Address NOT APPLICABLE 6TH FLOOR KOLKATA 700001 INDIA COP Status FULLTIME-COP Associate Year 1
takes practice, but we don't have to do anything else. We don't have to advise, or coach or sound wise. We just have to be w
Jr. NIFTY BSE-midca BSE-smallcS&P500 VIX(87.53 h) Put/Call
hig low close 0.8748
KIRAN SANKAR ROY ROAD Address NOT APPLICABLE 6TH FLOOR KOLKATA 700001 INDIA COP Status FULLTIME-COP Associate Year 1979 Fellow Yea
ce, but we don't have to do anything else. We don't have to advise, or coach or sound wise. We just have to be willing to sit
VOLUME $h=52.3700
Amt--Cash Amt--F&O Amt--TotalNumber FII--Cash FII--F&O MF
3.42 World US:The number of buyers who agreed to purchase previously occupied homes fell sharply in November, a s
3.41
3.52
3.43
3.44
3.44
3.45
3.35
3.4
3.44
3.37
3.37
c
3.45
3.36
3.31
3.35
3.35
3.39 U.S. Treasuries rose as * The market *i The news may * Several Chinese banks th #Feb₅₀-OI- 27986к
3.23 ↓3.98 on 27/01/2010 BSE Reality=-7.97BSE Metal=-582BSE Auto=-4.78 Feb₂₀-OI- 1220к
3.11 * The news dented Asian* share
The T-note
markets
futures
with gained
the Shanghai
11.5/32share
to 118-03/32
index sliding
TYv 2 percent
Mar₅₀-OI801к
.SSEC. U.S. stock futures s
3.05 RkB--Our market is deeply ovBANKEX 2.99 REALTY2.60Mar₂₀-OI103к
3.05
3.09
3.09
2.98
2.88 The Dow sneezes again though mildly; the common cold virus has already been transmitt
2.86
2.86
2.93
3
2.99
3.13
3.09
c
3.24
3.26
3.31
3.37
3.37
3.33
3.24
3.25
3.58
3.58
3.63
3.61
3.59
3.58
3.58
3.58
3.56
3.61
3.6
3.51
3.51
ll sharply in November, a sign sales will fall this winter, undermining last summer's recovery.was the first decline following nine straight m
ready been transmitted to Europe and Latin America. It has also travelled far and wide: Asia is already seeing
25/02/2010 26/02/2010 %Change in 03/03/2010
Value Value Value Value
6,846.66 7,170.99 4.7371 7,544.67
9,611.58 9,828.68 2.2587 10,196.17
3,964.66 4,001.78 0.9363 4,084.60
13,333.25 13,474.86 1.0621 13,782.22
2,723.29 2,662.05 -2.2488 2,759.29
4,837.82 4,912.98 1.5536 5,018.61
5,188.92 5,173.99 -0.2877 5,277.60
15,989.77 16,401.52 2.5751 17,283.70
9,493.53 9,596.24 1.0819 9,825.93
2,953.92 2,961.56 0.2586 3,073.30
9,118.39 9,214.28 1.0516 9,345.50
3,196.34 3,236.69 1.2624 3,316.83
3,178.15 3,179.21 0.0334 3,263.16
6,956.64 7,062.68 1.5243 7,290.12
following nine straight months of gains and the lowest reading since June.The National Association of Realtors said Tuesday its seasonally
sia is already seeing mild onset of fever. Use this metaphor of common cold and influenza or any other; the f
rs said Tuesday its seasonally adjusted index of sales agreements fell 16 percent from October to a November reading of 96. It was the fir
uenza or any other; the fact remains that these days equity markets around the world are behaving like mini
cent from October to a November reading of 96. It was the first decline following nine straight months of gains and the l
markets around the world are behaving like mini clones of the US market while their own economic realities
Day-10 T-Day of 2010( MONTDATE Change NIFTY
Av of Nifty & Sensex open hig low
Date Intra-day Highest↑5.79 on 4/5/2009
↓3.21 on 2/3/2009
VOLUME
WORLD
Dow Jo
Nasdaq
S&P-500
Bovspa
Nik
Han
Kospi
Sanhai
Cac
Dax
Futs
"Go for a business that any idiot can run – because sooner or later, any idiot is probably going to run it."
"If you stay half-alert, you can pick the spectacular performers right from your place of business or out of the neighborhood sh
"Investing without research is like playing stud poker and never looking at the cards."
wn economic realities may differ considerably. This is because the major participants in all of the markets rem
SENSX
close open
high
low
close
ss or out of the neighborhood shopping mall, and long before Wall Street discovers them."
nts in all of the markets remain the same group of investors and/or traders. It is their shifting from one asset
shifting from one asset class to another not so much one market to another.
INDIAN MARKET
MONTH WEEK 1 T-Day of 2 DATE Change
WEEK Week EnDay
Av of Nifty & SensexNIFTY
Intra-day open high
52 Week High--- Highest↑5.79 on 4/5/2009
52 Week Low--- Lowest↓3.21 on 2/3/2009
5173 5244 326+85=411 17790 17379 17540 10660.5 6946.1 8697.6 4405.3
5170 5252 236+263=499 17776 17277 17554 10760.1 7050.4 8970.5 4468.2
4955 5040 158+946=110 17712 16608 16859 10357.6 6783.7 8661.2 4313.3
4766 4882 18+877=895 16877 15982 16358 9985.7 6509.8 8232.7 4156.1
VOLUME $h=52.3700
NSE BSE Dow Jo Nasdaq S&P-500 Bovspa Nik Han Kospi Sanhai
max=3.5319 min=1.0357 10618.2 2317.2 1144.9 70262.7 10798.3 22296.8 1695.3 3277.14
max=2.8035 min=0.4021 10609.7 2287.9 1139.1 68978.3 10982.1 21654.2 1701.8 3224.2
max=1.1403 min=0.1231 10172.9 2205.3 1091.8 66220.1 10590.6 20726.2 1684.4 3128.6
max=1.2905 min=0.0393 10067.3 2147.4 1073.87 65401.8 10198.1 20121.9 7640.4 2989.3
Commodities
"Investing without research is like playing stud poker and never looking a
NIFTY SENSX
CD 3,911.06 3,875.57
CG 14,249.32 13,322.21
HC 5,167.10 4,857.36
IT 5,402.00 5,189.62
3-Apr
BANKEX
CD
CG
FMCG
HC
IT
METAL
OIL&GAS
POWER
PSU
REALTY
TECk
WORLD
WEEK
Day
Week End Date
Dow Jo
Nasdaq
S&P-500
Bovspa
Nik
Han
Kospi
Sanhai
Cac
Dax
Futs
COMMODITY
MONTH
T-Day of
DATE
Day
TURNOVER
MCX
NCDEX
ENERGY COMMODITY
OIL $
GAS $
PRECIOUS METALS
GOLD $
SILVER $
PLATINUM
BASE METALS
COPPER $
INDUSTRIAL
OVERALL 9.6
y/y Oct--09 10.3 0.1 BASIC 5 INTERMEDI 14.3 CAPITAL
y/y Nov--09 11.7 NOV 08=2.5 6 19.4
Diwali Muhurat Trading / Deepavali 2010 Muhurat Trading will be held on Friday,
5th November 2010 (Diwali Amavasya – Laxmi Puja).
SR
FLOW PATTERNS
FIIs have taken a break after buying a record Rs 90,950 crore shares in the first three quarters of the f y2009-10.
From January this year, FIIs sold shares worth Rs 10,555 crore. This trend might increase, since FIIs generally have cut their we
Survey of global fund managers by Merrill Lynch for emerging equity markets indicates that
2010 January 40% underweight on India
February 59%
Even after record investments in the first three quarters, FII ownership in the free-float segment (excluding promoters’ shareh
2007 September peak of 47%
2010 January 36.44%
Citi : Budget would be an important trigger for FII flows returning to India.
If 1-- things remain calm in global markets and 2---the Budget is positive to neutral for markets,
then there are fair chances of FII flows resuming. Most FIIs are sitting on cash and they are waiting for the dust to settle in glo
Things were, however, quite bright in the first three quarters of 2009 when the total holdings of FIIs in Indian companies inclu
In the first three quarters, the secondary market accounted for 36 per cent of the total FII investments, a marked change from
DSP Merrill Lynch:FIIs buying through the primary market was a function of the choice that was available. The strong primary,
Citi’s Kapoor said “One of the reasons for this trend could be that shares in primary offerings like IPOs and QIPs are offered at
FIIs also preferred to buy shares from other FIIs through block deals to minimise the acquisition cost. No wonder, block deals w
FLOW PATTERNS
NET FII INFLOW IN INDIAN MARKETS
DIIs--- such as banks and insurance companies preferred to remain on the sidelines in a rising market.Mutual funds increased
Their ownership of India Inc moved up just 0.62 % in the past three quarters.
NEW BUSINESS PROSPECT
Biometric applications
A fingerprint of a person will m
Robinson Innovation & Technologies Ltd UNLISTED
Bartronics Ltd LISTED Today, large Indian corporation
Genpact LISTED Security agencies and banks loo
TCS LISTED
Wipro LISTED
Infosys LISTED
Microsoft FOREIGN LISTED(USA)
Google FOREIGN LISTED(USA)
f y2009-10.
enerally have cut their weight on Indian markets since the Sensex moved closer to 18,000-levels in the first week of January.
or the dust to settle in global markets. They cannot remain on cash for long and will have to put liquidity to work in markets which offer g
in Indian companies including investments through Global Depository Receipts (GDRs) and American Depository Receipts (ADRs) was up 1
nts, a marked change from the previous three financial years when FIIs were net sellers (see table) Placements with institutions have bee
lable. The strong primary, qualified institutional placement and block deal pipeline facilitated this.
Os and QIPs are offered at a discount so FIIs may have preferred this route to put money. QIPs tend to increase free float which increases t
. No wonder, block deals within FIIs totalled Rs 30,000 crore in the nine months of 2009.
NS
INDIAN MARKETS Rs crore
t.Mutual funds increased their shareholding from 3.76 per cent to 3.92 per cent. The DIIs preferred mid-cap and small-cap stocks to large-
gerprint of a person will match with another is one in 10 to the power 8, whereas, in the case of Iris it is one in 10 to the power 78.
y, large Indian corporations want to have desktop solutions to secure data that provides the biometric login to the system and logical secu
rity agencies and banks look at biometric applications to offer new-age solutions
of January.
with institutions have been the most prominent source of their investments followed by initial public offers and conversion of foreign curre
ee float which increases the weight in indices like MSCI and could lead to incremental FII flows.
e system and logical security functionality like encryption and decryption using digital fingerprint technology.
nd conversion of foreign currency convertible bonds.
Subject: Quick Estimates of Index of Industrial Production and Use-based Index (Base
GOVERNMENT OF INDIA
PRESS INFORMATION BUREAU
1 The Quick Estimates of Index of Industrial Production (IIP) with base 1993-94 for the month of Decem
2. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the mo
3. In terms of industries, as many as fourteen (14) out of the seventeen (17) industry groups (as per 2-d
4. As per Use-based classification, the Sectoral growth rates in December 2009 over December 2008 are 7.5% in Basic goo
5. Alongwith the Quick Estimates of IIP for December 2009, the indices for November 2009 have under
6. Statements giving Quick Estimates of the Index of Industrial Production at Sectoral, 2-digit level of N
___________________________________________________________________
Note: -
2. The release of the index for January 2010 will be on Friday, 12 March 2010.
2008-2009 2009-2010
Apr 171.1 176.9
May 177.4 183.4
Jun 158.8 181.4
Jul 161.4 175.5
Aug 160.4 178.1
Sep 162.9 174.9
Oct 175.1 190.9
Nov 175.4 193.6
Dec* 188.1 206
Jan 188.1
Feb 183.2
Mar 209.8
Average
Basic goods
Month -355.65
2008-2009 2009-2010
Apr 221.3 231.3
May 230.4 239.2
Jun 220.5 244.1
Jul 228.2 238.9
Aug 226 243.3
Sep 224.8 236.8
Oct 234.4 245.2
Nov 225.6 238.5
Dec* 234.6 252.1
Jan 233.6
Feb 226.2
Mar 251.1
Average
Dec 2 7.5
Apr-Dec 3.4 6
* Indices for Dec 2009 are Quick Estimates.
NOTE : Indices for the months of Sep'2009 and Nov'2009 incorporate updated production data.
Consumer goods
Month -286.64
2008-2009 2009-2010
Apr 315.6 301
May 310.3 306.9
Jun 293.2 306.2
Jul 290.8 318.9
Aug 283.9 314.8
Sep 293.7 322.3
Oct 278.1 311.2
Nov 299.2 334.9
Dec* 326.1 365.1
Jan 347.2
Feb 323.3
Mar 328.1
Average
Dec 1.7 12
(Base: 1993-94=100)
New Delhi
for the month of December 2009 have been released by the Central Statistical Organisation of the Ministry of Statisti
ricity sectors for the month of December 2009 stand at 206.0, 360.7, and 235.2 respectively, with the corresponding g
dustry groups (as per 2-digit NIC-1987) have shown positive growth during the month of December 2009 as compared
r 2008 are 7.5% in Basic goods, 38.8% in Capital goods and 21.7% in Intermediate goods. The Consumer durables and Consumer non-dura
ember 2009 have undergone the first revision and those for September 2009 have undergone the second (final) revis
ctoral, 2-digit level of National Industrial Classification (NIC)-1987 and by Use-based classification for the month of De
y, with the corresponding growth rates of 9.5%, 18.5% and 5.4% as compared to December 2008. The cumulative gro
cember 2009 as compared to the corresponding month of the previous year. The industry group ‘Transport Equipme
rables and Consumer non-durables have recorded growth of 46.0% and 3.7% respectively, with the overall growth in Consumer goods bein
one the second (final) revision in the light of the updated data received from the source agencies. (It may be noted th
fication for the month of December 2009, along with the growth rates over the corresponding month of previous year
2008-09
178.9
578.5
160.9
281.2
108.6
312.5
115.6
260
156.3
326.3
242.6
327
325.1
165.9
429.1
387.9
358.9
176
295.1
223.7
275.4
331.7, which is 16.8% higher as compared to the level in the month of December 2008. The cumulative growth for th
2008. The cumulative growth during April-December, 2009-10 over the corresponding period of 2008-09 in the three
group ‘Transport Equipment and Parts’ have shown the highest growth of 82.2%, followed by 44.6% in ‘Machinery an
ncies. (It may be noted that revised indices (first revision) in respect of October 2009 have already been released in Ja
ng month of previous year, including the cumulative indices and growth rates, are enclosed.
e cumulative growth for the period April-December 2009-10 stands at 8.6% over the corresponding period of the perv
od of 2008-09 in the three sectors have been 8.5%, 9.0% and 5.8% respectively, which moved the overall growth in th
by 44.6% in ‘Machinery and Equipment other than Transport Equipment’ and 29.0% in ‘Basic Chemicals & Chemical Pr
ready been released in January 2010 and these indices shall undergo final (second) revision in March 2010).
onding period of the pervious year.
Chemicals & Chemical Products (except products of Petroleum & Coal)’. On the other hand, the industry group ‘Oth
n March 2010).
d, the industry group ‘Other Manufacturing Industries’ have shown a negative growth of 9.4% followed by 6.9% in ‘Fo
% followed by 6.9% in ‘Food Products’ and 0.1% in ‘Leather and Leather & Fur Products’.
STRIKE 4000 4100 4200 4300 4400 4500 4600 4700 4800
C1
No 85 165.5 417.5 668.5 124.5 -217.5
%
P1
No 23.5 62 34 321 524.3 -265.5
%
4900 5000
S&P Composite Return
ite Return Index Bull and Bear Markets 1914-2002
S&P Composite
site Price Index Bull and Bear Markets 1914-2002
The plunge in the markets during the past week has push
But, you might ask, when do bull and bear markets begin
There is general consensus on the first two questions. Bu
The S&P 500 Composite is usually used to determine the
The third question is more controversial. Analysis of bull
For example, the 1920s bull market topped out on Septem
Daily data for the S&P Composite Total Return Index exis
First, using total returns reduces the size of the declines d
Second, using total returns changes the timing of the bull
The overall impact is to shorten the length of bear market
What do we find out from this history of bull and bear mar
The average bear market showed a decrease of 32.7% and lasted 1 year and 2
To put the current bear market in perspective, only two bear markets have lasted
The extent of the decline in stocks has been similar throughout the world. The M
The decline in the stock market has had a dramatic impact on the equity risk pre
The last time the equity premium had been over 9% in the United States had be
On the other hand, the equity risk premium now is only 1% for the ten years thro
One of the current fears is that stocks will continue to underperform bonds in the
Below, we provide the history of bull and bear markets in the United States since
1. A history of bull and bear markets in the major stock markets outside of the
2. A history of bull and bear markets on a total return basis
3. A history of bull and bear markets on a total return, inflation-adjusted basis
By providing information on other countries, investors can see how the United S
Similarly, adjusting for inflation is also important. Inflation has been higher since
The one variable we do not factor in is taxes. Tax rates vary from one country to
In some cases, the current stock market index, which covers the broadest range
For each market index we provide information on
Canada
Europe
France
Germany
Japan
The United States is the country for which the most detail
The Dow Jones Industrials Average is used both because it provides a benchma
The S&P 500 Composite is a better benchmark of the US Stock Market since it c
A brief history of the principal causes of past bear markets is provided below. F
World
Obama vowed last month to "get much tougher" with China in trade disputes.
Critics say the yuan is undervalued by up to 40 percent.
The yuan's value was tied to the dollar for decades, but Beijing broke that link in 2005 a
Commerce Minister Chen Deming said exports might not recover to pre-crisis levels for
Under crisis conditions, we do not rule out the possibility of adopting special policies, in
Zhou ( said at a news conference)
that while such a policy would be "withdrawn sooner or later," the global outlook is stil
But cheap money drove up asset prices as well, especially in property marke
Loose money is now set to become inflationary
China's monetary policy has shifted toward a neutral stance in recent months
but it will have to tighten further if inflation and the property bubble are to b
The People's Bank of China (PBoC) has twice hiked banks' required reserve ra
but we suspect that (1)the tightening moves have had little effect.
(2)China has not yet started to tighten liquidity significantly, (3)nor has it laid
It will be difficult, however, for the central bank to tighten very much,
even if it had the political backing to do so.
There are RMB 1.2 trillion in central bank bills and repurchase agreements se
The danger is that Greece’s fiscal problems spin out of control, that a c
Then in the European context becomes Spain, Portugal, Ireland and Ita
Secondly, for a country like India, if investors start to worry about the pr
So that is Second Avenue of pure financial contagion that is more worr
but they maybe forced to bring capital back.
Our judgement would be that we are not seeing that yet but that remain
Marc Faber
Greece will be bailed out indirectly by the European Central Bank (ECB
and these bonds will then be bought by the public or financial institution
But he doesn’t think it will work out.
In 10 years time, I would estimate that between 30-50% of tax revenue
I think other countries like Spain, Portugal will the also have to be baile
and it will lead to more monetisation in Europe, one of the reasons the Euro h
19/03/2010 (at 19:18hrs) RBI has hiked the repo & reverse repo rate by 0.25 %
Mar 19 ‘10 5
Today’s move by RBI is the first increase in policy rates since July 2008 when the rep
Since October, 2008, RBI started the process to reduce interest rates and lowered t
INDIA joined central banks in Australia and Malaysia, which raised rates this month
The US Federal Reserve and the European Central Bank are among those waiting fo
has projected a 125-basis point increase in policy rates this year [Citigroup ]
Expect RBI to raise the repo & reverse repo rate by another 0.25 % [ HDFC Bank ]
rkets during the past week has pushed the United States stock market into its worst bea
hen do bull and bear markets begin and end? What index should be used to measure ch
ensus on the first two questions. Bull and bear markets are determined by looking at th
site is usually used to determine the dimensions of bull and bear markets. The Wilshire
more controversial. Analysis of bull and bear markets in the past has always used the S
0s bull market topped out on September 7, 1929. If someone had invested their money
P Composite Total Return Index exists back to 1988, and monthly data exists before the
ns reduces the size of the declines during bear markets and increases the returns to sto
turns changes the timing of the bull market tops and the bear market bottoms. The reas
to shorten the length of bear markets and increase the length and size of bull markets.
rom this history of bull and bear markets based upon total returns? Since the reopening
se of 32.7% and lasted 1 year and 2 months. . The shortest bear market was the crash
e, only two bear markets have lasted longer than this one, the 1929-1932 and 1938-194
similar throughout the world. The Morgan Stanley Capital International World Index, th
ramatic impact on the equity risk premium—the difference between the yield on stocks a
over 9% in the United States had been in 1967. However, times when the equity premiu
now is only 1% for the ten years through July 2002. The last two times when the equity
ontinue to underperform bonds in the future, as they have during the past three years. A
ar markets in the United States since 1914 on both a total return and on a price basis in
currently experiencing one of its worst bear markets since the Great Depression, there i
d bear markets in the United States is readily available from other sources, but we have
investors can see how the United States stock market has performed relative to other s
tant. Inflation has been higher since World War II, and was especially strong in the 194
. Tax rates vary from one country to another, vary from state to state, vary over time, va
bull market become a bull market and a bear market become a bear market? This is a m
s are measured from the highest closing value on an index to the lowest closing value on
eates a panic and stocks sell off suddenly. When no more bad news comes out and inv
tion of smaller sell offs markets as bad news succeeds bad news. The bear market of 2
e to form bottoms or make tops, sometimes of two years or more. This makes it difficult
ven greater problem before the 1960s because many countries did not keep daily indice
also depends upon the index that is used. Take the current bear market in the United S
above, measuring the size of a bull or bear market differs dramatically depending on wh
xample of someone who had invested at the top of the market in 1929. The S&P Compo
es within a downtrend from our definition of bull markets. For example, in early 1930, th
and bear markets should also be different before 1900 than after 1900. In the 1800s, inf
during a bull market, the market must rise by at least 40%, preferably to a new high in t
ng of bull and bear markets has become much better coordinated between global stock
market bottom or top in each country. The most recent data should not be taken as THE
Price Index
Return Index
Return Index Adjusted for Inflation
ex, which covers the broadest range of stocks in that country, lacks sufficient long-term
ket top.
ex at the market top.
ange in the index from the previous high or low.
n calendar days of each bull or bear market.
(Canada, France, Germany, Italy, Japan, United Kingdom and the United States) as we
mmary statistics on the largest, smallest and average bull and bear market moves. This
correlation with other stock markets because of its greater dependence on resource-ba
market proved to be the worst for Australia in this century. The declines of the Great De
ed a continuous bull market from 1875 to 1929 as dividends sufficiently covered any dec
tied to the US economy, but it relies more on resources than the United States does. T
orst stock market decline during the 1929-1932 bear market when the Investor’s Index o
ndex uses Morgan Stanley Capital International’s (MSCI) Europe Index as measured in
be noted about the European index. First, Europe failed to recover from the post World
grain of salt because currency controls and stock market controls reduced convertibility
comparable returns to US stocks, and bull and bear market phases have followed the r
ange has not played as important a role in the French economy as the stock markets in
f the 1920s more strongly than other European countries, but it also had the longest bea
vely well, following the bear and bull market patterns of the rest of the world. Nevertheles
data are heavily influenced by the military and economic woes that beset the country du
evere stock market crashes than any other country in the 20 th Century. During the hype
re, but still staggering drop of 74% between 1929 and 1932 as Germany succumbed to
relatively well. Note that the 1960-1962 bear, which included problems in Berlin, was w
e worst performing stocks of any major country during the 20 th Century. War, inflation, a
nsidered whenever bull markets are measured in Italy. The 12-year bull market from 19
nth time during the past century in which Italian stocks have declined by 50% or more. T
has shown a very low correlation with the rest of the world’s stock markets because of i
bear market occurred between 1920 and 1924 as the economy slowed following World W
1949, the Japanese stock market bounced back strongly between 1950 and 1990 produ
ongest history of any stock market, allowing us to look back over 300 years to see how
for the United Kingdom. The Financial Times 30 Industrials provides the longest daily h
hes before World War I were in the 1720s when the South Sea Bubble struck England, a
he country for which the most detailed stock market information is available, and for whi
both because it provides a benchmark for stocks in the United States, and because it ha
ark of the US Stock Market since it currently includes about 75% of the stock market’s c
t bear markets is provided below. For more information see either 101 Years on Wall S
t real panic caused by falling land prices, an overexpansion of credit, and the bursting o
sis in Europe in 1848 affected US stocks.
lt in California and a banking crisis between 1853 and 1855 culminated in the “Banker’s
il War ended leading to deflation
ure of Jay Cooke & Co. and the collapse of rail speculation closed the NYSE for 12 days
rket initially fell after Garfield was shot, and a 3-year economic depression followed.
d wars, silver legislation, the Baring Crisis and other events kept the market in a bearish
pper” Panic caused by the corner on Northern Pacific Railroad stock, President McKinle
e bursting of the Copper stock bubble and the Financial Panic of 1907
rld War jitters
rs were scared that either peace or war could slow economic activity
orld War I Depression and Deflation
29 Stock Market Crash, Banking Panic, the Great Depression
rket falls back after recovering from 1932 lows
ion within the Great Depression
War II Begins as the Axis powers attack the Allies
orld War II Recession and Deflation
ns over Sputnik, Hungary and Eisenhower’s heart attack
ennedy Panic” over confrontation between Kennedy and the steel industry
ns over Viet Nam, inflation and domestic problems
Watergate, inflation and recession
ion, budget deficits and trade deficits
erest rates, the second OPEC crisis, recession, inflation
valued market and program trading lead to the 1987 stock market crash
f War begins and Japan’s stock market bubble ends
defaults and Long Term Capital Management crashes
an overvalued market, recession, corporate malfeasance
has been one of the world’s strongest in the past century, and this is reflected in its perf
s and inflation strengthens the returns from the 1950s bull market and especially the 19
was in a trading range between 1947 and 1949. On a total return basis, the market bot
ock market entered into a huge bull phase in which stocks increased in value over 14-fol
x has been calculated since 1969, and we have extended the index back to 1919 on a p
basis, the 1929-1932 bear market was clearly the worst stock market decline of the 20 t
s in European stocks in the 1920s reduced the global strength of the 1920s bull market,
effect (as proposed),then the U.S. federal government would have
nal Budget Office} an estimated ---
des, but Beijing broke that link in 2005 and allowed the currency to rise by about 20 percent thr
might not recover to pre-crisis levels for two to three years due to "uncertain and unstable" glob
possibility of adopting special policies, including special foreign exchange mechanism. This is par
ooner or later," the global outlook is still uncertain and the foundation of a recovery is not certa
Central bankers in the core G3--the U.S., the European Central Bank, and Japa
ce hiked banks' required reserve ratios (RRR) in 2010, following a return to net liquid
es have had little effect.
idity significantly, (3)nor has it laid out a clear path for its exit from the extraordinari
bank to tighten very much,
bills and repurchase agreements set to expire in the next two months. In March alone
usiness School at N
bers in 2010 Budget in terms of roadmaps for deficits and debt GDP ratios for
s that government finances are moving in a more healthy direction particularly
t rate increases between Apr and Dec. So monetary policy is starting to norm
ont, that doesn’t really amount to much by way of real interest rate increases.
arge is the collateral damage for other economies?
lems spin out of control, that a center crisis re-emerges and the markets start
s Spain, Portugal, Ireland and Italy, some of the East European governments,
estors start to worry about the prospects in their core markets they will not just
cial contagion that is more worrisome.
he European Central Bank (ECB) that will guarantee some bonds that they are
the public or financial institution.
China The statistics office produces a combined figure for the first
Jan & Feb 2010 Jan & Feb 2009 Expected
2.70% 1.50% 2.30%
5.40% ? 5.20%
n from a year ago ( when the economy was slumping) & the impact of last month's Lunar New Y
20.70%
17.90%
26.60% 26%
ar earlier, when the government was launching its 4 trillion yuan ($585 billion) stimulus packag
t and see for another month or two before raising interest rates
rate
} An increase in the repo and reserve re
increase in policy rates since July 2008 when the repo rate was increased 50 basis points. The reverse repo was last raised in Ju
d the process to reduce interest rates and lowered the CRR to inject liquidity in the system to spur economic activity in the wak
ustralia and Malaysia, which raised rates this month, while Norway and Israel did so at the end of last year.
European Central Bank are among those waiting for evidence of a more concrete recovery before they unwind record low bor
increase in policy rates this year [Citigroup ]
everse repo rate by another 0.25 % [ HDFC Bank ]
ight-day winning streak for the Dow Jones Industrial Average, as India’s unexpected interest rate boost spurred speculation wit
et into its worst bear market since the Great Depression. On July 23, the S&P 500 Tota
used to measure changes in the market? Should we use a price index or a total return
ned by looking at the change between the highest close and the lowest close in the stoc
rkets. The Wilshire 5000 is the most comprehensive index of US stocks, but its history
s always used the S&P Composite Price Index, not the Total Return Index. Since most
nvested their money in the stock market on September 7, 1929, how long would they hav
ata exists before then. Using historical data on the S&P Price Index and its dividend yiel
es the returns to stocks during bull markets. In fact, using total returns eliminates the De
et bottoms. The reason for this is that bull markets build tops, and bear markets form bot
ze of bull markets. This difference can be seen in the bear market that followed World W
Since the reopening of the stock market in 1914, the average bull market showed an inc
arket was the crash in 1987, which lasted less than two months. The longest bear marke
-1932 and 1938-1942 bear markets, and only two bear markets have shown sharper dec
onal World Index, the MSCI EAFE Index (which includes most developed countries exce
the yield on stocks and on government bonds. At the end of 1999, the 10-year equity ris
en the equity premium is high are also bad times to invest. Someone who had invested
es when the equity risk premium fell below 1% was in 1982 and 1990 at the conclusion
past three years. Although we cannot determine what will happen to stocks and bonds
d on a price basis in order that you can compare the results. These histories should rem
Depression, there is an even greater need to study past bull and bear markets to make
ources, but we have introduced several innovations to help investors better understand
ed relative to other stock markets. Dividends are an important part of investor returns. I
lly strong in the 1940s and 1970s. Inflation reduces the size of bull markets and increas
e, vary over time, vary between different income tax brackets, and differ for dividends a
market? This is a much more difficult question to answer than it might seem at first.
west closing value on an index, and then back again. Simple enough, but in reality this p
s comes out and investors realize that the world isn’t coming to an end, markets bounce
The bear market of 2000-2002 has included three sell offs. The sell off in 2000 occurred
his makes it difficult to determine WHEN the market hit a top or a bottom. There may be
not keep daily indices that could pinpoint the exact top or bottom. Instead, only monthly
arket in the United States. The bull market of the 1990s topped on January 14, 2000 usi
ly depending on whether dividends and inflation are included. This is why we include p
29. The S&P Composite Price index didn’t return to its old 1929 high until 1954, but the
ple, in early 1930, the stock market in the United States rallied by almost 50% from the 1
00. In the 1800s, inflation was low and investors depended more on dividends than on c
bly to a new high in the market, and the market must decline by at least 15% during a be
etween global stock markets. There was little coordination of bull and bear markets in th
not be taken as THE market bottom or market top, but is given only to indicate the exten
sufficient long-term daily data in order to determine when the exact tops and bottoms we
United States) as well as Australia. We also provide data on two international portfolios,
market moves. This data will help to compare bull and bear markets with each other to
ence on resource-based companies and because of its geographical distance from the U
nes of the Great Depression were mitigated by the strength in Gold and other resource
ntly covered any decline in stocks during that period of time. However, since the Lambe
nited States does. These two factors drive the Canadian stock market more than anythin
he Investor’s Index of stocks declined by 80%, almost as much as the decline in the Uni
dex as measured in US Dollars back to 1969 and our own reconstruction prior to that. B
from the post World War I decline as strongly as the United States did, primarily becaus
educed convertibility and liquidity of stocks, and thus the reliability of the data. The Germ
have followed the rises and declines in the United States. The 2000-2002 bear market
he stock markets in London and New York have in their countries. In general, French sto
had the longest bear market during the 1930s of any major country. The election of a S
e world. Nevertheless, French bear markets usually lasted longer than those in other co
beset the country during the 20 th Century. Two price indices are provided for Germany.
ry. During the hyperinflation of the 1920s, stocks declined by over 98% between 1918 a
many succumbed to economic collapse. The Nazi government placed controls on stock
ems in Berlin, was worse than the 1973-1974 decline, and that the 1987 crash was the
ury. War, inflation, a reliance on small industry, labor unrest, a lack of development in the
bull market from 1932 to 1944 produced a 3035% increase in nominal terms, but only a
d by 50% or more. The 1973-1974 bear didn’t end until 1977, and the 1987 bear began
markets because of its distance from and lack of integration with the rest of the world’s fin
ed following World War I. However, if you treat the 1990-2002 decline as a single bear
950 and 1990 producing some of the strongest bull markets of any stock market in the w
0 years to see how the market has behaved since 1700. However, analyzing bull and b
s the longest daily history for British stocks; however, the index only includes 30 stocks,
ble struck England, and in the 1820s in the post-Napoleonic War boom that led to massi
vailable, and for which we can provide the best analysis of bull and bear markets. We us
s, and because it has the longest daily stock market data of any index. We have adjust
the stock market’s capitalization. The S&P Composite included 90 stocks until 1957 an
01 Years on Wall Street by John Dennis Brown, or Wall Street and the Stock Markets b
ted in the “Banker’s Panic” of 1857 as the California Gold Bubble ended.
back to 1919 on a price basis and 1925 on a return basis. Since the World Index is a c
et decline of the 20 th Century with stocks falling by 63% on an inflation-adjusted return b
e 1920s bull market, which was strongest in the United States. The collapse in stock valu
about 20 percent through late 2008. That rise was halted after the global crisis hit.
ain and unstable" global conditions.
mechanism. This is part of the package of policies to deal with the global financial crisis,
m the extraordinarily loose monetary conditions put in place at the end of 2008.
nths. In March alone, RMB 680 billion in bills will expire
illion targeted by regulators. Interest rates should be hiked modestly over the year, a
es, given the role that China has played in supporting Asian exports and its commodi
o government debt.
e European context or Pan-Asian context.
the markets start to attack other governments with serious debt problems.
an governments, the UK already in the last few weeks.
s they will not just be less inclined to invest in places like India notwithstanding
ments on government debt and that will then prove to be a huge problem and
ed figure for the first two months to iron out distortions due to timing of the Lunar New Year h
govt target
3% for whole year
?
month's Lunar New Year holiday.
1 ST IN 2010
2 ND IN 2010
rse repo was last raised in July 2006, when RBI raised the rate 25 basis points.
economic activity in the wake of the global downturn.
to inflationary pressures.”
anks to meet their credit requirements in the next three to five months [HindujaGroup]
oost spurred speculation withdrawals of economic stimulus will curtail global growth.
he S&P 500 Total Return Index closed at 1134.01, a decline of 46.6% from its all-time hi
or a total return index?
close in the stock market cycle. Typically, a bear market occurs when the market declin
s, but its history only goes back to 1970. The Dow Jones Industrials Average has the lo
ex. Since most investors have their money in mutual funds that reinvest their dividends
g would they have had to wait to get their money back? If you use the price index, the a
its dividend yield, as well as information from the New York Times Composite and the D
eliminates the December 1976-March 1978 bear market because the decline using the T
markets form bottoms. During these time periods, investors receive dividends that increa
followed World War II. The bear market began on May 29, 1946, hit a bottom in May 19
et showed an increase of 189% and lasted about 3 years and 7 months. The longest bu
gest bear market occurred between November 1938 and April 1942. The mildest bear m
own sharper declines, the 1929-1932 and 1937-1938 bear markets. Although this would
d countries except for the United States) and the MSCI Europe Index have all declined
10-year equity risk premium in the United States was 9.4%, meaning that someone who
ho had invested their money in stocks at the end of 1967 would have made less money
t the conclusion of the last two bear markets in the United States.
ocks and bonds in any individual year, history does show that anyone who invested the
ories should remind us that bear markets do end, that bull markets are stronger and last
markets to make long-term decisions about investing in the stock market. This Guide an
tter understand the nature of bull and bear markets. Most sources only provide the beg
vestor returns. Ignoring them doesn’t provide a true picture of how much investors woul
kets and increases the size of bear markets. In some cases, bull markets have simply b
r for dividends and for capital gains. Given all of these complications, we have left taxes
seem at first.
ut in reality this presents several problems.
markets bounce back. The bear markets of 1987 and 1998 fit this category. Bull marke
n 2000 occurred because of the bursting of the Technology bubble, the sell off in 2001 o
m. There may be only a slight difference between the lowest low on the market in one ye
d, only monthly indices are available, and these can obscure the fluctuations of stocks w
ary 14, 2000 using the Dow Jones Industrials Average, March 24, 2000 using the S&P 5
hy we include price indices, total return indices and total return indices adjusted for infla
til 1954, but the S&P 500 Return Index rebounded to its old 1929 high in 1945, and on a
t 50% from the 1929 low before plunging to new lows later in the year. Obviously, this w
idends than on capital gains for their returns. As a result, throughout the 1700s and 180
15% during a bear market. In some cases there are borderline bull and bear markets th
ear markets in the 1960s, but virtually every stock market fell into a bear market in 1990
dicate the extent of the rise or decline during the current market cycle. These numbers
and bottoms were. In those cases we have provided data from more than one index. F
tional portfolios, the MSCI World Index and the MSCI Europe Index in order that these in
th each other to see how an individual bull or bear market compares with the norm. We
tance from the United States and Europe. We have used the All-Ordinaries Index for bo
other resource stocks. For the most part, the Australian stock market has been very re
since the Lamberton data do not include all stocks traded in Australia, there is probably
more than anything else. The Montreal Stock Exchange has the longest daily data for an
ecline in the United States. The 1973-1974 bear market was milder than in the United S
n prior to that. Because the index relies on stock markets from a number of different cou
primarily because stock markets in northern Europe did not recover during the 1920s. E
data. The Germans introduced laws that prevented stocks from trading at lower prices,
002 bear market is the worst in Europe since 1950, exceeding even the 1973-1974 decli
neral, French stocks have underperformed the stock markets of other countries as inflat
he election of a Socialist government in France in the mid-1930s prevented the market fr
hose in other countries, usually topped out before the rest of the world and recovered la
ed for Germany. The Commerzbank index provides daily data back to 1956, but was dis
between 1918 and 1922 wiping out virtually all equity wealth. Data from the hyperinflati
ontrols on stock prices during World War II, which delayed the drop in the value of stock
7 crash was the culmination of a bear market that had begun in 1986. The 2000-2002 d
velopment in the south and other problems have beset Italian investors for the past 100
terms, but only a 67% increase after inflation. Amazingly, after adjusting for dividends a
987 bear began in May 1986. Similarly, the Gulf War bear market was followed by a sec
of the world’s financial markets. This remains as true in the 21 st century as it was in the
as a single bear market, the overall decline on the price index comes to 68%, exceeding
k market in the world. Japan did face strong declines in 1973-1974, but was barely phas
lyzing bull and bear markets prior to 1900 is difficult because of the lower rate of inflatio
ludes 30 stocks, and it is increasingly less representative of the market as a whole. The
hat led to massive speculation in Latin American mines and a second stock market bub
r markets. We use three indices to analyze past bull and bear markets in the United Sta
We have adjusted the data from the Dow Jones 12 Industrials, which was calculated be
ks until 1957 and 500 stocks thereafter. S&P started calculating data for the index in 19
Stock Markets by Peter Wyckoff.
orld Index is a combination of all of the world’s indices, it can help us focus on the even
adjusted return basis. There have been four other declines in global stocks of around 50
pse in stock values after World War II laid the foundations for the greatest bull market o
cial crisis,
October 2009,
nd of 2008.
over the year, as early as the second quarter, and the RRR has at least another 100 b
nd its commodity demand.
hich is of increasing concern about fiscal sustainability around the world. This
ightening monetary policy.
problems.
notwithstanding the very good growth prospects,
e problem and necessitate the monetisation of debt and that will lead to a wea
en the market declines by 15% or more. Historically, bull markets have had increases o
Average has the longest daily history of all indices, but the Dow Jones Industrials only i
vest their dividends, using a price index to determine the movement of markets does no
he price index, the answer would be September 1954, but on a total return basis, an inve
Composite and the Dow Jones Industrials Average, we have recalculated historical bull a
decline using the Total Return index was only 14.4% while the decline in the price inde
dividends that increase their returns. Using the current bear market as an example, the
a bottom in May 1947, then bounced up and down for two years, hitting a slightly lower
hs. The longest bull market occurred between May 1947 and July 1957, over 10 years!
The mildest bear markets occurred in 1957, 1966, 1990 and 1998 when the market de
Although this would make the current bear market one of the three worst of the past cen
x have all declined by over 50% from their peak in 2000, exceeding the declines that the
that someone who owned stocks had earned on average 9.4% more in stocks than in b
e made less money in stocks than in bonds between 1967 and 1977.
e who invested their money in 1982 or in 1990 when the equity premium last fell below 1
e stronger and last longer than bear markets, and that in the long run, the overall rise in
rket. This Guide and the accompanying Excel worksheet provide a history of bull and be
nly provide the beginning and ending dates for bull and bear markets based upon a pric
much investors would have earned during bull or bear markets. This is truer in the past th
rkets have simply been attempts to keep up with inflation. For example, the return index
, we have left taxes out of our calculations. All data are based upon before-tax returns.
ategory. Bull markets occur when a series of good news generates investor optimism, a
he sell off in 2001 occurred because of fears over recession and the terrorist attacks of
he market in one year and the lowest low in another year. What if a market touches 107
ctuations of stocks within any given month, and thus, when bull and bear markets were i
000 using the S&P 500 Price Index, and September 1, 2000 using the S&P 500 Return I
es adjusted for inflation.
h in 1945, and on an inflation-adjusted total return basis, the S&P composite returned to
ar. Obviously, this would not count as a bull market since it was primarily a reaction to a
the 1700s and 1800s, there was virtually no overall increase in the average price of sto
nd bear markets that we provide information on, leaving it to the judgment of the reader
ear market in 1990, 1998 and in 2000-2002. This trend will probably intensify in the futu
e. These numbers will be revised, as changes require.
e than one index. For example, we provide stock market indices from both Toronto and
n order that these international portfolios can be compared with national indices.
with the norm. We provide brief descriptions of the indices that are used here. More de
dinaries Index for both price and return indices, and data from the Sydney stock exchang
et has been very resilient during the past century, having very strong bull markets and re
a, there is probably some degree of survivor bias in these numbers.
est daily data for any overall index of the Canadian market, but in 2000 the Montreal Sto
han in the United States because of the role of oil and gold stocks in Canada. The 2000
mber of different countries, the bear markets are fewer and milder than they are for indivi
during the 1920s. Europe’s January 1929 high was only about 20% above its 1919 high
ding at lower prices, and the black market value of the Mark, Lira and other currencies w
he 1973-1974 decline.
r countries as inflation, economic, military and political problems hurt French investors. T
vented the market from recovering earlier than it did. The strong nominal performance o
ld and recovered later. French stocks lost half their value during the 2000-2002 bear ma
o 1956, but was discontinued in 2000. The CDAX All-Share index is daily back to 1970
rom the hyperinflationary period are measured in inflation-adjusted marks to eliminate th
n the value of stocks until after the war. This was compounded by the currency reform o
. The 2000-2002 decline in German stocks is worse than either of these post-war bear
ors for the past 100 years. Italy has never developed an equity culture similar to that in
ting for dividends and inflation, the Italian stock market was just 9% above its 1928 peak
as followed by a second decline in stocks in 1992 when the Lira sank after the European
ntury as it was in the 20th century. The TOPIX index provides daily data back to 1953, an
to 68%, exceeding that of 1920-1924. The post-World War II inflation wiped out investo
ut was barely phased by the 1987 crash. Since the popping of the Japanese stock mark
ower rate of inflation and the greater importance of dividends. Moreover, since no conte
ket as a whole. The FTSE All-Share provides a more representative indicator of British s
d stock market bubble. These two declines were worse than the decline during the Grea
s focus on the events that affected global stock markets and factor out purely national ev
stocks of around 50%. The first occurred after World War I between 1918 and 1919 whe
eatest bull market of the 20 th Century. The 1949-1961 global bull market produced a 55
east another 100 basis points or so to climb.
d the world. This is probably the best contribution the government can make t
will lead to a weak dollar.
nced back strongly on July 24, which could make the July 23 close a bottom in this bear
ium last fell below 1% would have earned more in stocks than in bonds over the course
n, the overall rise in stocks far offsets the declines.
history of bull and bear markets in the world’s primary stock markets.
s based upon a price index, but we provide
s truer in the past than it is today because dividend yields are much lower today than the
ple, the return index for France rose by 321% between July 1945 and October 1948, but
before-tax returns.
nvestor optimism, and bear markets occur when a series of bad news generates investo
terrorist attacks of September 11, and the sell off in 2002 occurred because of corporat
market touches 107.4 in August 1945. If the market hits another low in August 1947 at 1
ear markets were initiated.
e S&P 500 Return Index. Which is correct?
mposite returned to the 1929 high at the 1937 bull market top. Quite a difference!
arily a reaction to an oversold market.
average price of stocks in London. For two centuries, virtually all of the return to investor
gment of the reader whether to include them or not. Before 1900, we use 25% as the m
y intensify in the future as global stock markets become even more integrated.
m both Toronto and Montreal for Canada since Montreal provides more historical daily d
nal indices.
sed here. More detailed information on sources is provided in the Encyclopedia of Glob
dney stock exchange before 1958.
bull markets and relatively mild bear markets with no declines over 50% on a total retur
00 the Montreal Stock Exchange stopped trading stocks and discontinued their stock ma
Canada. The 2000-2002 bear market in Canadian stocks is the worst decline in the Can
n they are for individual European countries. Since the Europe index is calculated in US
above its 1919 high. A smaller bull produced a smaller bear, and this reduced the size
other currencies was substantially below their official values. Moreover, strong inflation
French investors. The SBF-250 index is used for current data, and the CAC General In
minal performance of French stocks in the 1940s is due more to inflation than to a recove
2000-2002 bear market, exceeding the declines that occurred in 1973-1974.
daily back to 1970. Prior to that, indices calculated by the Bundesamt and the Reichsam
marks to eliminate the effects of the hyperinflation. Otherwise, the index values would ha
he currency reform of 1948, which wiped out 90% of the value of financial assets, leading
ese post-war bear markets, with stocks declining almost 60% from their highs.
re similar to that in the Anglo-Saxon countries. Bear markets in Italy have been longer a
above its 1928 peak in September 1992! Sixty years and no real returns. Now you kno
after the European currency crisis. Italian investors must certainly hope that the adopti
ata back to 1953, and other indices extend the monthly data back to 1914. All return dat
on wiped out investor profits. The 3280% nominal rise in Japanese stocks between Octo
apanese stock market bubble, the performance of the Tokyo stock exchange has been h
over, since no contemporary indices were calculated, all stock market indices have been
indicator of British stocks, but it only provides daily data back to the 1960s. Prior to that
ine during the Great Depression (1929-1932) and World War II (1936-1940). The 1972-
ut purely national events. Since the United States represents almost 50% of the world in
1918 and 1919 when the post-war recession caused a 50% decline in stocks. A second
rket produced a 550% increase in stocks on an inflation-adjusted return basis. Only the
ment can make to the economy at this point to allay any concerns investors m
bottom in this bear market.
he market’s capitalization. On the other hand, the S&P Composite includes 75% of the
me, price indices produce dramatically different results from return indices.
years earlier! Similarly, the S&P Composite Price Index in April 1942 was still below its
World War I. This produces some interesting differences from the results that price indice
rket of the 1920s registered a 657% increase as opposed to a 409% increase on a price
on March 24, 2000 at 1527.46, but the S&P 500 Total Return Index had its highest clos
c 7-year bull market. However, on a total return basis, the market bottomed out on May
1932 and September 1932. In only three months, the market more than doubled in pric
he Twentieth Century, the Ursa Major, was the 1929-1932 crash in which stocks fell 83.8
ems. So far this bear market has only given up five years of investment returns, while th
market.
nds over the course of the next ten years. Stocks beat bonds by 3.4% between 1982 and
ower today than they were in the past. Just looking at the price index ignores about one
d October 1948, but adjusting for inflation, investors actually lost 9% during those three y
s generates investor pessimism.
ecause of corporate malfeasance and the crisis of confidence it created. The Japanese
n August 1947 at 107.5 did the bear market end in 1945, or if the market hits a low of 10
a difference!
e return to investors came from dividends, not from capital gains. In the 20 th Century, i
use 25% as the minimum rise in the stock market on a price basis.
tegrated.
ore historical daily data than Toronto, but Montreal no longer trades stocks.
nued their stock market index. Consequently, indices from both the Montreal and Toron
st decline in the Canadian stock market since the 1929-32 bear market.
x is calculated in US Dollars, the return index is adjusted for inflation using data from the
s reduced the size of the decline in 1929-1932.
over, strong inflation in Italy and France, as well as the German currency reform in 1948
he CAC General Index and the INSEE General Index of stocks are used before the 199
on than to a recovery in the stock market. During the 1945-1948 bull market, the nomina
3-1974.
mt and the Reichsamt have been used to provide long-term data on Germany.
ex values would have to be measured in the trillions!
ncial assets, leading to an 80% decline in stocks.
heir highs.
have been longer and deeper than in any other country.
urns. Now you know why Italians indulge in la dolce vita.
hope that the adoption of the Euro will bring the Italian market more in line with the beha
t indices have been calculated retrospectively, and these stock market indices exclude c
1960s. Prior to that, other broad indices of British stocks have been used to provide dat
6-1940). The 1972-1974 bear market was the worst bear market of the 20 th Century for
ck market for data back to 1800. The Total Return version of the S&P 500 was calculate
ividends and deflation reduces the size of the 1929-1932 bear from 86% to 79%. The 19
es up and down. At the market bottom in 1982, the US inflation-adjusted return index wa
50% of the world index, its influence on the index should not be ignored. Data are adjus
n stocks. A second decline of 50% occurred after World War II, largely because of the c
urn basis. Only the bull market of the 1980s and 1990s came close to matching the 195
cerns investors may have about Indian government finances.
ncludes 75% of the market’s capitalization. It has daily data back to 1929, and monthly
2 was still below its level in June 1901, even though on a total return basis someone wh
ults that price indices provide.
increase on a price basis, a large difference that results from including dividends.
had its highest close on September 1, 2000 at 2108.76, a difference of five months!
ttomed out on May 17, 1947, two years before the price index did.
than doubled in price. The 1920s bull market was the strongest, increasing by 657%, wh
hich stocks fell 83.8%. It is also interesting to note that six of the last eight bear markets
ent returns, while the bear markets that ended in 1947 and in 1932 each took away 17 y
% between 1982 and 1992, and by 7.8% between 1990 and 2000.
the 20 th Century, inflation provided an upward bias to stocks, and investors get more o
o served the ASX well in the current bear market. It was the only major exchange to hit
ncy reform in 1948 sent the value of European stocks crashing as measured in US Dolla
Germany.
n line with the behavior of other European markets.
et indices exclude companies that had short lives during stock market manias and did n
used to provide data back to 1700.
he 20 th Century for the United Kingdom as OPEC, runaway inflation, and political proble
P 500 was calculated using historical data on the price index and on dividend yields.
86% to 79%. The 1929-1932 bear is followed in size by the 1937-1938, 1973-1974 and 2
red. Data are adjusted for inflation using the United States’ CPI.
ely because of the collapse in the price of European and Japanese shares due to the de
o matching the 1950s bull.
1929, and monthly data back to 1871.
basis someone who had invested in the market in June 1901 would have gotten a seve
ng dividends.
of five months!
easing by 657%, while the 1947-1957 bull market increased by 517%. Also note that wit
eight bear markets ended in October.
ach took away 17 years of investment returns.
vestors get more of their returns from capital gains than from dividends. Consequently,
ajor exchange to hit a new high in 2002.
easured in US Dollars. The combination of these factors, which culminated in the devalu
and political problems decimated investor confidence. Since this bear market occurred
dividend yields.
8, 1973-1974 and 2000-2002 bear markets, each of which declined by 45-50%. Other b
hares due to the decimation caused by World War II and the inflation and problems that
have gotten a seven-fold return between 1901 and 1942. As you can see, to accurately
%. Also note that with the exception of the 1929 market top, each succeeding bull marke
ther and further down.
ds. Consequently, our standards for bull and bear markets before 1900 are more libera
inated in the devaluation of European currencies in 1949 led to a European stock marke
before World War I should be treated as general indicators.
ear market occurred during a period of high inflation, the 77% real decline comes close t
by 45-50%. Other bear markets were shorter and shallower than these three major bea
and problems that followed the end of the war. A third decline of 49% occurred during th
n see, to accurately analyze market history, we must include dividends, but surprisingly,
ceeding bull market has yielded investors more money than they held at the previous m
900 are more liberal than for the 20 th Century.
ropean stock market crash more vicious than that of the Great Depression.
cline comes close to matching the US bear market of the Great Depression.
se three major bears.
% occurred during the 1973-1974 bear market, and the decline of 2000-2002 has been a
ds, but surprisingly, no one has done this in the past.
d at the previous market top.
ssion.
ession.
00-2002 has been about 47%. Other declines have been relatively modest.
modest.
8-Mar-10 Reco Stop-loss Target #1 Target #2 Target #3
Hero Honda Buy only abv 1868 1857.00 1894.00 1905.00 1934.00
Ceat no recos