The Great Bull Market

This Monday is 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. That was the most points ever and percentage-wise, it was the second-best day since the Depression.
Over the last 25 years, the S&P 500 has returned 2,700% (dividends and capital gains) while gold and inflation have both roughly doubled (sorry gold bugs).
Here’s to the next 25 years!

Posted by on August 8th, 2007 at 2:07 pm


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