Eddy Elfenbein submits: This Monday is going to the 25th anniversary of one of the greatest moments in Wall Street history - the release of Fast Times at Ridgemont High. This movie created a cultural reference point for an entire generation of Wall Street traders. In earlier generations, things like the Bible and Shakespeare performed a similar role.
This Sunday will also be important. It’s the 25th anniversary of the beginning of the Bull Market. On Thursday, August 12, 1982, the Dow bottomed out at 776.92.
To add some perspective, the market’s P/E ratio was less than half of today’s P/E ratio. The dividend yield was about four times that of today’s yield.
The following Tuesday, August 17, the market skyrocketed a phenomenal (get this) 38 points. Percentage-wise, that was the second-best day since the Depression.
Since then, Gold has roughly doubled while the S&P 500 has return over 2,200% (dividends and capital gains).
Here’s to the next 25 years!
Related Articles
|
Hedge Fund Jobs
Job Seekers: Search jobs by category, get job alerts by email or live feed, apply online See full list of jobs »
Employers: See all recruitment options, get applications online or by email Post a job »
Trading Center
- Free E-Newsletters
- About Seeking Alpha
- About Us
- Contact Us
- What's New
- Readers Feedback
- Advertise With Us
- Contributors
- Contribute an Article
- Feature Your Book
- Our Contributors
- Anonymous Contributions
- Dispute an Article?
- Legal
- Terms of Use
- Privacy
- Copyright
This article has 1 comment:
- CrossProfit
- 572 Comments
My Website
Aug 09 01:59 AM1) Does this mean that gold has some catching up to do over the next 25 years?
2) An ounce is an ounce. How many of the original S&P 500 stocks from 25 years ago are in the index today?
3) If you stuck with the original index from 25 years ago, what would the percentage be?
Either way, this is impressive as you can play the index. Now, if you were to go back a little farther you will find that oil and the S&P 500 are neck to neck in this race. Remember oil at $2 a barrel?
Eddy loves our data mining tactics…
Save some Champaign for the night watch… it doesn't look like they are getting ready to celebrate on the NIKKEI.
Saul Sterman
CrossProfit