2013 Stock Market

[Shaun @ Tru6]

What happened in 2013 that the stock market returned 32%?

[masraum]

I'm going to go out on a limb and say it bounced back after 2012.

But that's just a guess without having looked.

[Jims5543]

Cannot take you seriously, you are off the rails nuts with TDS. I am pretty sure that is where this is heading.

[masraum]

or maybe not

[masraum]

I think it's one of those times that if you happen to look at the right period, it looks great. If you look at 2008, it'll probably be almost the opposite. And that's why you've got to look at the market in the long term, because if you start taking it apart in smaller increments, you can get very wrapped up trying to find things that aren't there.

[KFC911]

I'm not looking back either, but it's had mostly spectacular returns since early/mid '09....

It goes up, it goes down....but it's up approx. 300% over the past decade....FED juice included....YMMV

[MRM]

Three things. Remember, it wasn't until almost 2013 that the market finally got back to the peak it saw in 2007. The absolute nadir came in 2009. Then prices went up dramatically until 2012 when there was another drop, and then the market caught fire again toward the end of 2012 and 2013 was a boom year.

So, number one factor is that some of the gains were just the natural rebound that comes after a bad market was oversold. Number two factor, the economy in 2013 was fundamentally stronger and was in post-recession growth mode, so corporate earnings were better, which supports higher stock prices. Factor number three, four, five and six through one million is a little dance the Fed called Quantitative Easing. With 0 percent interest rates corporations had free money to invest with which juiced the stock market on one hand and with no return on bonds on the other hand, everyone was jumping into stocks because there was no where else to go.

[Shaun @ Tru6]

^^^ thanks Mike, makes sense. A friend and I were doing an analysis and he claimed a 51% return over a certain time period so we went looking up averages over the years.

[McLovin]

What happened in 2017 that that stock market returned 22%?

[MRM]

The anticipation of tax reform, regulatory reform, and repatriation of Eurodollars to the US at favorable tax rates.

[KFC911]

Originally Posted by McLovin

What happened in 2017 that that stock market returned 22%?

A Trump bubble?

I've been mostly on the sidelines though...it was WAY overpriced already (imo), the day Trump was elected...too rich for me...YMMV.

After the previous "once in a lifetime" eight year bull run...I actually cashed in....not just paper gains anymore .

[Craig T]

Originally Posted by KC911

A Trump bubble?

After the previous "once in a lifetime" eight year bull run...I actually cashed in....not just paper gains anymore .

Me too! two weeks ago. Into laddered treasures 3 mo, 6 mo, 9 mo, 12 mo...at 2.2%. If just one of these allegations against Trump sticks, or we get a quarter with some missed earning, I think we'll see a quick 10%-15% correction. I can't afford that now that I'm retired with no pension.

[tabs]

Yawn

[Craig T]

Originally Posted by tabs

Yawn

Oh yeah Tabs, I forgot...The world is coming to an end. I better stock up the underground bunker.

[crb07]

I have to restock my bunker. Everything I bought in the 90’s is expired.