Stocks Close In on Big 2009 Gains
Dow up 61% since the low point in March
By Harry Kimball,  Newser Staff
Posted Dec 31, 2009 8:00 AM CST
Graphic shows the Dow Jones Industrial Average daily close since December 2007 with timeline of key events.   (AP Photo)

(Newser) – Stocks have rebounded mightily since the dark days of March, though analysts warn the dazzling recovery could make for a lackluster 2010, or even auger a double-dip recession or '30s-style yo-yoing markets. The good news first: Barring a disastrous close today, the Dow will be up around 61% since March lows, and 20% for the year, the best showing since 2003. The S&P and NASDAQ are also on track to have their best year since then.

But history suggests caution may be in order for 2010, the Wall Street Journal notes. The big gain after a dizzying fall smacks of the 1930s and '70s, when stocks stagnated or even lost their value again. Even if that’s not the case, this rally was fueled by cheap deals and the realization that the financial system was not destined to totally melt down. And small investors are still wary of volatile bets. So don’t bet on 2010 just yet.