With nearly one year having passed since the bankruptcy of Lehman Brothers, we looked to see how many stocks have had a positive return since September 12th, 2008. Looking at the current members of the S&P 500 (500 stocks), 55 names in the index have registered gains since last September, and less than half of those (27) have seen double-digit returns. While only 27 stocks are up more than 10%, 374 are currently down more than 10%, and 33 of those are still down by more than 50%. Overall, the average stock in the S&P 500 is down 21.6% since 9/12/08.
If the S&P 500 breaks 1030 on the downside and closes below it, it could spell the start of a nasty long overdue correction. Bug rallies after big falls are bad news and generally signal teh bear market will be back soon.
Posted by: mohamed | November 09, 2009 at 10:04 AM