As we ring in the new year, it feels nice to put 2008 behind us.
In what all traders would agree was the craziest market they'd ever seen, we were taken on a roller-coaster ride fueled by the subprime mortgage fiasco, a recession, bailouts, a credit crisis, scandal and a historic election.
Here are 10 of the wildest days and biggest point moves on the Dow during the last 12 months:
#10 Saving our Fannie (and Freddie): After years of financial shenanigans and controversy, Freddie Mac and Fannie Mae were placed into conservatorship in a federal takeover of the government sponsored enterprises. (July 14)
# 9 The day after (Bear Stearns): Just one day after the collapse of Bear Stearns, the market rallied on a 75-basis-point Fed rate cut and better-than-expected earnings reports from Goldman Sachs and Lehman Brothers. (March 18)
#8 We've got a bad feeling about this: Facing the possibility of a 500-point drop in the Dow, the Fed sprang into action early to shore up the markets. (Jan. 22)
#7 I've always wanted to be loved ... and be a banker: The federal government announced it would take preferred equity stakes worth up to $250 billion in several U.S. banks to keep money flowing through the financial system. (Oct. 14)
#6 Consumer confidence hits all-time low ... let's buy stocks!: Consumer confidence reaches the lowest levels on record since the survey began 41 years ago and the market rallies to post its second-largest gain of the year. Huh?!? (Oct. 28)
#5 It's official: U.S. economy enters recession ... in 2007: This headline from the NBER combined with other weak economic data and more troubles in financials to drag down the Dow by nearly 700 points. (Dec. 1)
#4 See you later, Lehman: Wall Street greeted a new week with more turmoil in the financial sector leading the S&P 500 to its largest one-day percentage drop since 9/11. (Sept. 15)
#3 We are the world -- global effort shores up financials: The Dow notched its single-largest point gain ever (936 points), and largest percent gain since 1933. (Oct. 13)
#2 House rejects bailout plan: The markets collapsed after the U.S. House of Representatives failed to pass the $700 billion Emergency Economic Stabilization Act. (Sept. 29)
#1 Market roller coaster takes investors on a thrill ride: In the most-volatile and most-active session of the year, the major indices plunged sharply at the open, as global economic fears rocked the U.S. markets. (Oct. 10)
Greg Tucker is the executive editor of OptionsZone.com.











Reader Comments (Page 1 of 1)
1-03-2009 @ 10:21AM
Matt Goss said...
I am new to your site and found it via Businessweek. Anyway, Greg's 2008 recap is great. By the way, I agree that the markets were extremely wild, the wildest I've ever experienced in my 27 years as a trader. I've got some trading advice to offer as well but mine is automated. Maybe my advice can smooth out some of the bumps in everyone's P&L. http://www.commentrader.com/beta/index.apsx.
1-03-2009 @ 8:14AM
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1-03-2009 @ 8:50PM
pnexpire said...
These are truly amazing times we are going through. If we live long enough, one day we'll look back like the seniors do today when they talk about the Great Depression. (By the way, what was so "great" about it?)
You know, there is opportunity lurking all over out there. There are people making strategic moves and will make a fortune from this period. Everything is on sale: businesses, real estate, stocks, etc. It just comes down to having the liquidity to start taking advantage of the bargains.
We will shake our heads at the missed opportunities when we look back.
EVERYTHING WILL REBOUND!