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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

(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.

Graphic shows the Dow Jones Industrial Average daily close since December 2007 with timeline of key events.
Graphic shows the Dow Jones Industrial Average daily close since December 2007 with timeline of key events.   (AP Photo)
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Nine months ago, investors had to make a very big leap of faith. Now investors have to make maybe a smaller leap of faith, so you're not going to be rewarded the way you were back then. - Hasan Tevfik, Citigroup

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COMMENTS
Showing 2 of 2 comments
DontLikeYou___
Jan 4, 2010 5:23 AM CST
1 2 3[br]4
Snowleopard
Jan 1, 2010 11:19 AM CST
seems like it was just yesterday that everybody was attacking obama for being a socialist who was out to destroy wallstreet, and everytime wallstreet dipped it was spun as a vote against obama. pretty ridiculous to for anyone to use such logic, and even more so to think such logic would only apply when the market's drop.

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