The total return on the S&P 500, including dividends, was 11.96 percent for 2016, the eighth straight calendar year of positive returns since the crash of 2008 and 2009. That means the S&P 500 produced a positive return during all eight years of President Obama’s administration. An investment in the S&P 500 at the beginning of 2009 would have almost tripled by the end of 2016, increasing over 293 percent. No other president in our history can claim a longer winning streak. Presidents Reagan and Clinton came the closest: The S&P 500 produced positive returns in seven of the eight years of their administrations. The latest winning streak isn’t the longest, however -- that was nine straight years from the beginning of 1991 to the end of 1999, spanning the administrations of both the first President Bush and President Clinton. It remains to be seen if President-Elect Donald Trump can help keep the current winning streak alive for at least another year and … [Read more...] about Which president can claim longest stock market winning streak?
2008 stock market crash
Last Updated Apr 9, 2010 12:03 PM EDT Thornton Parker href="http://www.bkconnection.com/authorbiobooks.asp?Type=AUTH&SEL=THORNTONPARKER">Thornton Parker has Parker first explored this concern 10 years ago in his book What His latest research only reinforces his href="http://www.cbo.gov/ftpdocs/105xx/doc10526/09-08_Baby-Boomers.pdf">Congressional Budget Office report (CBO) saying asset prices are unlikely to decline when boomers retire. The CBO Why do you call stock-based retirement plans a ‘national Ponzi scheme’? It is a Ponzi scheme in that early returns to early Won’t boomers stretch their 401(k) stock sales over many years? If there’s The Congressional Budget Office’s report concluded we wouldn’t see a decline in asset prices, mainly because it hasn’t happened historically when people retire. Plus, foreigners could make up the difference. What’s wrong with that thinking? History is not a good guide to unprecedented … [Read more...] about Will Boomers Cause a Stock Market Crash?
(MoneyWatch) A recent USA Today article says that the recent rise in stocks can be explained by one simple factor -- companies repurchasing their own stock. "Last year, companies in the Standard & Poor's 500-stock index spent $404.2 billion to buy their own company's stock, nearly double the amount back in 2009... .," the piece notes as its critical piece of evidence positing a direct link between stock buybacks and the buoyant market performance of late. The implication: Companies are creating demand for their own shares, pushing up stock prices. That sounds plausible, but it's not not supported by the facts. Look at the following chart of S&P 500 buybacks since 1999, with buybacks shown as a percent of outstanding shares.As the data makes clear: -- Stock buybacks peaked just before the stock market crashed in 2008 -- Buybacks plunged in 2009, as stock prices were surging -- Buybacks jumped again in 2011, when the S&P 500 turned in only a small gainIn fact, if one were … [Read more...] about Are stock buybacks driving the stock market?
I remember clearly my first year as a gold options trader on the floor of the Commodities Exchange of New York (COMEX), specifically October 19, 1987. The morning started with stock selling and lots of it and ended with a day of historic losses. Twenty five years later, although the recent financial crisis was more severe and long-lasting, the crash of 1987 remains the single-most dramatic day of trading that most people have ever experienced on Wall Street. That day came to be known as "Black Monday" because the Dow Jones Industrial Average plummeted 508 points, losing 22.6 percent of its total value in a single session. It was the greatest percentage loss Wall Street had ever suffered on a single trading session. Despite the agonizing days of the financial crisis of 2008, those downside moves barely crack the top ten worst days for the Dow Jones Industrial Average - the 7.8 percent loss on October 15, 2008 is number nine. What caused the crash of 1987? According to a 2006 Federal … [Read more...] about Lessons from the 1987 stock market crash, 25 years later
A stock market crash is loosely defined as a sudden and sharp decline in stock prices across a broad portion of the stock market. Crashes can be triggered by panic, economic factors, bursting of speculative bubbles, and these days, by automated trading technologies.Since 1772, the U.S. has experienced a total of 22 stock market crashes, but not all have been equally harsh or long-lasting. With that in mind, here are five of the most notable U.S. stock market crashes, and a brief rundown of the causes and results of each one.Image Source: Getty Images.The Panic of 1907One of the worst stock market crashes in U.S. history was the Panic of 1907. The stock market fell by about 50% during a three-week period in October and November of 1907, and started with a stock manipulation scheme gone wrong, which led to the collapse of the Knickerbocker Trust. This subsequently led to a panic that resulted in a string of bank failures.Not surprisingly, this led to a general public distrust of the … [Read more...] about When Did the Stock Market Crash?