Saturday, May 16, 2009

Bear Market 1981-1982


Chart from Clusterstock.com

On November 28, 1980 the S&P 500 hit a high of 140.52 and then proceeded to go down 27.1% to 102.42 in August 1982. During this time the S&P 500 formed a base for 5 months and then went up 64.6% off the lows to 168.62 in August 1983. It's note worthy that Ronald Reagan was president during this time where tax rates were lowered and credit(Debt) was expanded greatly. Many people think Ronald Reagan was a great president but probably at the expense of future generations? I can't argue that Reagan wasn't because I enjoyed prosperity during this time just as every other American did.

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