Chart Of the Day

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How does the current stock market rally rank? To answer this question and to provide some perspective, all major market rallies of the last 105 years are plotted on today's chart. Each dot represents a major stock market rally as measured by the Dow. So what does this chart show? Several things... Over the past century, the Dow has begun a major rally 26 times or once every four years. Second, most major rallies (76%) resulted in a gain of between 30% and 150% while lasting between 272 and 913 trading days (1.1 to 3.6 years). As it stands right now (with the Dow up 50% as of its most recent rally high on March 4th, 2005), the current Dow rally would be classified as moderate. Stay tuned...

Notes:
- The Dow Jones Industrial Average was not adjusted for inflation or dividends.
- There are 252 trading days in a year (100 trading days equal about 4.8 calendar months).
- The starting year for the biggest five rallies have been labeled for your convenience.
- A major stock market rally has been defined as a 30% or greater increase in the Dow (following a correction of 15% or more).

Inlägget är redigerat av författaren.