We won’t get the final numbers til after the close today, but here is what they look like going into the final session:

• Nasdaq is up 45%; Its the big winner for 2009 of the major US Indices;

• S&P 500 index up 25% for the year.

• Dow Jones Industrial Average is up 20% for the year (up 61% from its March lows); Transports are up 18%.

Here is how the year looked, month by month, along with major events:

Chart courtesy of WSJ


Today also marks the end of the decade as well as the year.

Below you will see a chart depicting the price performance of the Dow for each decade since 1900. As you can see, from the close of 1999 through 2009 was the second worst performance on record. Only the Great Depression decade of the 1930s was worse.

The current zeros decade also shares an unfortunate outcome with the 1930s in being a decade during which the Dow actually ended lower than where it started.

Happy 2010!

Chart courtesy of Chart of the Day

Category: Markets

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

19 Responses to “Year End Market Review”

  1. km4 says:

    Actually the biggest winner is the ‘extend and pretend’ of America’s dysfunctional economy dependent on increasing debt, faux GDP growth, ponzi schemes and bubbles. Once the the obscene amount of gubmit spending and printing of dollars stops look out…..here comes double dip recession!

  2. Patrick Neid says:

    And here I thought next year ends the decade. 1,2,3,4,5,6,7,8,9, and 2010. Starting with the completion of the first year- 1AD, that’s how it would play out assuming it takes 1o complete years to make a decade. I clearly have too much time on my hands!

    BR: By your reckoning, that would make the year 2000 in the 1990s decade . . .

    Try “0,1,2,3,4,5,6,7,8,9″ instead.

  3. call me ahab says:

    and why not- we are an economic juggernaut wowing the world with our prowess and skill in the fine arts of-

    QE, ZIRP and mark to make believe-

    a fantasy land where the make believe does indeed come true- our motto-

    “more debt to further our prosperity” or better yet-

    “Zimbabwe? you aint seen nothin’ yet”

  4. Pete from CA says:

    Patrick is right. There was no year 0.

    The numerically illiterate may have celebrated the dawn of a new century on Jan 1, 1900 and the end of the millennium on Dec 31, 1999, but that doesn’t make it so.

  5. Pete from CA says:

    Of course you can call any 10 years a “decade” even if the 20th century ended on Dec 31, 2000. Sorry about being an ass, I am not a happy camper that I have to work today…

  6. ashpelham2 says:

    I’m at work right now, and glad to be doing so. One, because I’m glad to actually have a paying gig right now, but also because I lost my wedding ring a couple days ago and don’t want to go home.

  7. Steve Barry says:

    I learned a few things today and confirmed others:

    1) The ISM is run by a bunch of morons…they put out data on Wednesday only to revise it Thursday…why not just put out the revised number?

    2) SEC is 100% toothless…on Fast money, a trader bragged how he talked to insiders at BofA and they told him they thought this would be a good quarter due to M/A. How is this legal? Anyone?

    3) According to CNBC, if Apple puts out a new product, it is 100% assured to be successful and lift all tech stocks.

  8. call me ahab says:

    ” if Apple puts out a new product, it is 100% assured to be successful and lift all tech stocks.”

    no doubt- this will be out soon-

    The MacBook Wheel

    hopefully I can get on a waiting list

  9. invest-safely says:

    I’m sure someone will find a way to support Buy and Hope investing with this info…even if it is dismal at best.

  10. torrie-amos says:

    it’s the old 80/20 rule, 20% of sales people sell 80% of the volume, jeeze so two bad decades out of ten, probably pretty standard fair imho

    i guess if we revert to the mean we will have 8 bad ones and two great ones going forward

    i’ll only be around for 5 of em god willing, i’m 51 and my goal is a hunnert, figuring that medical science in that time frame might get me another 10-25, hey, we can all have goals and dreams

  11. Pocket QQ says:

    One must only double $1000 exponentially 10 x to have a million, and one for good measure takes care of Uncle Sam. ;) Be patient and let your Futures option be your guide. LoL Remember, it is not about who is right or wrong. It’s about being on the right side of the trade at the right time.

    Hope you all have a prosperous New Year and Decade!

    Thanks Barry (Mr.TT) and The Big Picture, for all the hard-work and insight. Cheers ’1o!
    See you next year!

  12. DiggidyDan says:

    Also congrats to BR for being the man of the year:http://posterous.fusioniqrank.com/fusioniqs-barry-ritholtz-is-the-yahoo-tech-ti

    You seriously brought good advice to all of us during these tumultuous times. Happy New Year!

  13. Steve Barry says:

    We knew that the II survey has the lowest number of bulls since April 1987…now AAII sentiment, 37% Bulls and 37% bears last week, dramatically turned to the bullish side this week. Should be interesting next year. Happy New Year Barry and all on TBP!


  14. cewing says:

    If I remember correctly, wasn’t the Dow supposed to be doomed once that Democrat/Islamist/Socialist/Facist Barak Hussein Obama took office with his “anti-business, pro-minorities and poor people” polices?

    Or was that just Conservative Lie #1,783?

  15. rackgen says:

    Barry –

    Long time reader, first comment – which is offtopic, but what do you make of this RE analysis?

  16. stevenstevo says:

    That does it. No more stupid buy-and-hold for me. I am going to buy-and-not-hold from now on. Whenever I buy a stock, no more holding–I shall sell it immediately. While such a strategy would mean I would have stopped buying and holding after the lame returns on the stocks from 1/01/70 to 12/31/79 and thereafter missed out on the 200+% returns of the 80s and the 300+% returns of the 90s, I still would have avoided dropping from up over 500% to only 450% in the 2000′s.

    It’s real simple–if the market has strong returns and thus such a strategy does not work for 2010-2020, then I will go back to buying and holding. In short, the key is to chose an investment strategy based upon the prior decade. Take the 90s, if the market goes up over 300%, assume it will do so for the next decade and buy-and-hold your face off. If the 2000′s proved to be crappy, as they did, then stop buying and holding after that. Even more simply put, when the market is up, buy, and when it’s down, do not buy. Call it a buy-high-and-don’t-buy-low-strategy.

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