What a Year... What an Understatement!

Wow! I remember growing up and learning about various events in US History and thinking "weird, nothing really exciting happens any more." Little did I realize I was simply witnessing the "calm before the storm" or maybe I was just young and oblivious to all that was going on around me. Oblivious no more! It's amazing what happens when we, in our little bubbles of life, start to feel the impact of decisions being made thousands of miles from our quiet neighborhoods.

I thought that this information was a great insight to what we have lived through in the last year (from an economic standpoint)...definitely journal worthy!

2008 Tidbits
By The Number$

ROTTEN YEAR - The S&P 500 lost 37.0% (total return) during 2008, its worst calendar year performance since the stock index declined 43.3% in 1931 or 77 years ago. Its loss of 21.9% (total return) in the 4th quarter of 2008 was the 7th worst quarterly loss ever for the S&P 500 and its poorest quarterly showing in 21 years (i.e., since the 4th quarter 1987 produced a loss of 22.5%). The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the US stock market (source: BTN Research).
BEARS - The S&P 500 has experienced 9 bear markets (i.e., peak to trough declines of at least 20%) in the last 50 years (i.e., 1959-2008) or 1 bear market every 5 ½ years. The average bear market “peak-to-trough” decline in the last half-century has been 34.9%. From its all-time closing high of 1565 on 10/09/07, the S&P 500 fell 51.9% to its bear market closing low of 752 on 11/20/08 (source: BTN Research).
DOWN, THEN UP - Since closing at a bear market low of 752 on 11/20/08, the S&P 500 has gained +24.3% on a total return basis. The stock index closed at 932 on Friday 1/02/09 (source: BTN Research).
BIG SWINGS - The S&P 500 had 28 trading days during calendar year 2008 that produced a gain or loss of at least 4% (i.e., the index’s percentage change from consecutive trading days). In the previous 25 calendar years (i.e., 1983-2007), the S&P 500 had 28 trading days that produced a gain or loss of at least 4% (source: BTN Research).
DOLLAR LOSSES - The S&P 500 had a market capitalization of $12.87 trillion on 12/31/07. During calendar year 2008, the stock index lost exactly $5 trillion of market value, falling to $7.87 trillion on 12/31/08. Total US stock losses (from all domestic equities) amounted to $6.9 trillion (source: S&P, Rocky Mountain News).
SMALL-CAPS - The small-cap Russell 2000 stock index lost 33.8% (total return) in calendar year 2008, its worst calendar year performance ever. The Russell 2000 index is an unmanaged index of small-cap securities which generally involve greater risks (source: BTN Research).
GAS PRICES - The national average price of a gallon of gasoline ended calendar year 2007 at $3.05, rose to a peak price of $4.11 on 7/16/08, and ultimately finished 2008 at $1.62 a gallon. From 9/18/08 to 12/12/08 (i.e., a period of 86 consecutive days or more than 12 weeks), the national average price of gasoline dropped each day (source: AAA).
OIL PRICES - The price of oil ended calendar year 2007 at $95.95 a barrel, rose to an intraday record high of $147.27 on 7/11/08, and ultimately finished 2008 at $44.60 a gallon, a swing of nearly $103 a barrel in the final 5 ½ months of the year (source: New York Mercantile Exchange).