Rational Advisor

Here’s a list of dates of events and the events that created a stir in the markets

START INDEX VALUES - Jan 1 1992 (All numbers in local currency)

S and P 500 417.26
TSX 3493.66
Nasdaq 586.45
Dow 3172
TSX/60 (Dividends) 183.71

1992

- September - EXCHANGE RATE MECHANISM (ERM) CRISIS begins, Italian government devalues lira, UK forced out of the ERM (speculator George Soros reportedly makes over US$1 billion), worst one month loss for global fixed income strategy

1993

- May - Spanish currency crisis
- August - ERM fluctuation band widens effectively introducing floating exchange rates (which led to a lot of future currency problems)
- October - Venezuelan banking crisis

1994

- March - Turkey currency crisis
- May - Venezuelan currency ciris
- July - Brazilian banking crisis
- December - LATIN AMERICA “TEQUILA EFFECT” CRISIS begins, Mexican Peso devaluation, Argentinian banking crisis, First casualties in Japanese banking crisis

1995

- January - Kobe earthquake
- February - collapse of Barings bank
- July - Japanese banking crisis deepens

1997

- July - ASIAN FLU CRISIS begins, Thai baht devalued, followed by Phillipines Peson
- August - Indonesian rupiah collapse
- October - Hong King stock market panic spreads

1998

- August - Russian debt and LTCM default ciris begins, Russian debt default, Long Term Capital Management (LTCM) starts to collapse
- September - LTCM tell investors it lost $2.5 Billion or 52% of its value, $2.1 billion in August alone
- December - crude oil prices fall below $10 a barrel

1999

- January - Brazilian devaluation and debt default
- March - Cover of the Economist “Drowning in Oil”

2000

- January - Dot com boom peaks Dow hits 11,723
- March - DOT COM CRISIS begins, Nasdaq hits all time closing high of 5,048
- September - Nasdaq falls to 1,423, Dow falls to 8,236

2001

- September - September 11 terorist attacks
- December - Enron files for bankruptcy protection

2002

- July - WorlCom files for bankruptcy protection
- September - US plans for Iraq invasion, oil exceeds $30 a barrel, Canadian dolalr begins to appreciate from 62 cents

2003

- March - Invasion of Iraq

2007

- March - SUB-PRIME CRISIS begins
- August - Shares fall amid subprime fears
- September - US Fed cuts interest rates to 4.75% from 5.25%. Growing bank issues from subprime exposure

ENDING VALUE today mAR 31 2008

S and P 500 = 1325
TSX = 13327
Nasdaq = 2265
Dow = 12297
TSX/60 (Dividends) = 782.94

increase in indexes over these crisis ridden times

S and P 500 from 417.26 to 1325 = 217.5%, annualized = 4.98%
TSX from 3493.66 to 13327= 281.5%, annualized = 6.68%
Nasdaq from 586.45 to 2265 = 286.2%, annualized = 6.79%
Dow from 3172 to 12297 = 287.7%, annualized = 6.83%
TSX/60 from 183.71 to 782.94 = 326.2%, annualized = 7.67%

these are inflation adjusted ie these are after inflation returns

“The Chinese use two brushstrokes to write the word “crisis”. One brushstroke stands for danger, the other for opportunity. In a crisis, be aware of the danger - but recognize the opportunity” - John F Kennedy, Indianapolis, April 12, 1958

Rational

Comments RSS