The Balanced Spreadsheet-Financial News, Budget Advice, Debt help, Financial Tips, and other advice

November 17, 2009

The Stock Market Rebound of 2009

Filed under: Excel fun, Personal Finance, Real Example, Uncategorized — Tags: , , , , — thebalancedspreadsheet @ 8:16 pm

Have any of you been keeping your eye on the stock market recently?  If you are like most people, you stopped keeping track during the last half of 2008 and the first few months of 2009 when everyday on the news they talked on and on about dwindling retirement accounts and how people were withdrawing their money in droves.  Or maybe you stopped looking when you opened up your year end 2008 statement and noticed your 401(K) looked more like a 201(K).  But in case you have not noticed the markets have rebounded some, but the question is how much?  After doing a little research I found out the bottom of the market “appears” to have occurred on March 9th of this year.  I put together a table showing how much the market has recovered since then:

How come the news has not had a lead story covering the over 50% increase in the markets since March 9th?  Granted these gains are after hitting rock bottom lows not seen for over seven years, but what if you had panicked on March 9th and sold all of your stocks and mutual funds?  You would have missed out an over 60% return in your 401(K) and IRAs, while your safe money market account would have gotten < 1%.  In fact I was quite surprised to find that my two 401(K)’s have gotten a 79.5% and 65.3% return since March 9th!

Now I do realize that overall the market is still down about 25% since its peak on Oct 9th, 2007 and that your equities are still down around 20-30% since the start of the recession.  With that being said you sometimes just need to ignore the drama that comes from the news or from Washington and realize that it is not all bad and the recovery is starting.  Just remember that you do not get hurt on a roller coaster if you do not jump off when it is crashing, or when it is rising.  You just have to enjoy the entire ride and know that you will ok in the end.  🙂

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2 Comments »

  1. […] reward but also the most risk.  Stocks have been way down after their highs in late 2007.  But in 2009 they have started to make a recovery.  The key to stocks is to diversify by selecting mutual […]

    Pingback by The Financial How to series Part IV. How to start investing for retirement « The Balanced Spreadsheet-Financial News, Advice, tips, and more — January 28, 2010 @ 7:28 pm

  2. […] has quietly risen in the past year or so Goldman Sachs withstanding.  I wrote back in November how the stock market had gone up over 50% since its low point on March 9, 2009 and these gains have now carried on into the 1st quarter of […]

    Pingback by Stock Market Recovery « The Balanced Spreadsheet-Financial News, Budget Advice, Debt help, Financial Tips, and other advice — April 20, 2010 @ 8:31 am


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