Sunday, November 2, 2008
The Strategic Growth Model (SGM) portfolio was UP 16.5% during the month of October. Let's look at how some of the market indices fared...
• October 2008 was the most volatile in the 80-year history of the S.& P. 500. (see NYT chart, above)
• The Dow dropped 14% drop over the past four weeks — the biggest October decline since 1987, when the crash sent markets down 23% for the month. The S&P 500 was down 17%, and Nasdaq fell 18%. This ranked as the 15th worst monthly decline for the Dow Industrials since 1900.
• Compare 3 recent SPX Bear Markets: -46% from October 2007; Compare that with 1973-74 down 48% over 23 months. The 2000-03 bear was 49 percent over nearly 3 years.
• The S&P 500 had the most volatile month since November 1929 (1% moves higher or lower).
• Consider days with 4% moves up or down: None from 2003 through 2007; Three throughout the 1950s and two in the 1960s. October 2008 - 9 days with four percent plus or minus. That edges out September 1932’s record of 8. (NYT)