Almost exactly one year ago at the NYSE when the fundamentals of our economy were oh so strong:
On October 9, 2007 the Dow set an all time high of 14,164. On that same day the S&P reached its Mount Everest of 1,565.
And today? Well, we’ve hit a bit of a rough patch . . .
Stocks ended lower for the fifth straight session. According to preliminary calculations, the Dow fell 508.39, or 5.11 percent, to 9,447.11. The drop came a day after the blue chips fell below 10,000 for the first time in four years. The Dow skidded as much as 800 points on Monday before finishing with a loss of 370.
Broader indexes also fell. The Standard & Poor’s 500 index declined 60.66, or 5.74 percent, to 996.23, while the Nasdaq composite index fell 108.08, or 5.80 percent, to 1,754.88.
So in a year’s time we’ve gone from a bubble inflated high of over 14,000 to losing approximately 33% of the value of the DJIA at today’s market close of just under 9500. And an even greater 37% loss in value if we look at the Standard & Poor 500 index. How low can the Dow go? I’m guessing a bottom of 7000, but then I’m an optimist.
Maybe somebody should ask the candidates at the debate about this stuff. I can’t wait to see John McCain blame everybody but himself and his own party for this disaster.
