Dow Closed Above 10,000 for First Time in a Year – Chart of the Day

It was October 3, 2008 when the Dow Jones Industrial Average closed above the 10,000 level at 10,325.38. In the following five trading sessions, the widely watched index lost 1874.19, closing at 8,451.19 on October 10, 2008. Actually, October 3, 2008 was right in the middle of a steep plunge of the Dow. The index closed at 10,850.66 on September 30, 2008. Eight consecutive losing sessions cost the benchmark 2399. 47 points. That’s more than 22% in eight trading days, one of the worst declines of the index in its history.  Since then, the Dow was in a downward spiral amid the worst recession since the Great Depression. The decline accelerated early this year when big banks like Citigroup and Bank of America needed billions of dollars taxpayer money to survive. On March 9, 2009, the Dow closed at 6,547.05, a bottom that we can call only when looking back at the history.

Dow Jones Closed Above 10,000 for First Time in a Year

Though the Dow has gained 3,468.81 points since its March low, it is still more than 4,000 points off its peak reached in October 2007. But, as it has already happened, these shouldn’t be any doubt that the initial rally was real now.

The question is: Did you miss it?

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4 Responses to “Dow Closed Above 10,000 for First Time in a Year – Chart of the Day”

  1. zflynn |  Oct 15, 2009 at 2:16 am

    And it has NOTHING to do with the government’s behind the scenes manipulation of futures the past couple of months. BTW, if you buy that have I got a bridge for you….

  2. Sun |  Oct 15, 2009 at 10:43 pm

    I don’t have the government’s behind the scene manipulations, but I still think that the government did the right thing rescuing big banks like Citigroup and Bank of America. Given the financial market’s reaction after Lehman’s collapse, it’s hard to imagine what could happen any Citi, or BofA, or AIG had failed.

  3. zflynn |  Oct 16, 2009 at 5:54 pm

    If Citigroup and B of A and AIG and any other banks failed it would have been just like Washington Mutual’s collapse, more solvent institutions would have immediately stepped in and purchased the remaining assets at a fair market value, securing the depositors’ assets and business would have continued as usual, with the exception of stockholders and stock speculators, who are merely gamblers who cry when they take a big loss in a bad investment. As for the senior bank officers and board members and others who would go from riches to rags, that’s what happens when you take an enormously poor risk in a vastly over inflated real estate market. When banks were run rationally and carefully less than 5% of their assets were invested in real estate, these clowns were putting 65% or more in a fool’s market. Only those deluded by greed didn’t see the obvious collapse in the vastly over inflated real estate market that so long over due. All we’ve done with bailouts-besides wreck the economy-is to encourage foolish and stupid behavior in the future because the nanny state will bailout those who make poor decisions instead of let them pay the price that the foolishly greedy need to pay when they make and live in bubbles.

  4. Michael - The Fat Loss Authority |  Oct 18, 2009 at 7:22 pm

    I did but not to the best of my financial abilities… but I’d be cautious about the Bull re-appearing since many have predicted a dip to occur. Ah well, it’s all about dollar cost averaging for me anyways.