Wednesday, July 09, 2008

It's Official: S&P 500 In Bear Market

The key S&P 500 index tonight closed at 1244.69. That's down 20.5% from its October 9, 2007 closing peak of 1565.15. This in turn means that it meets the official definition of a bear market, which is to say that it has to be down 20% or more from its peak. One can of course question why the figure 20% was chosen and why they're measuring in nominal rather real dollars (with the CPI being 4% higher than in October 2007, the real decline is even greater, closer to 23.5%), but even so it is certainly noteworthy that the decline is so great that this generally used definition is met.


Anonymous Mike said...

Phew, now we can all relax knowing that what we've already known the last 10 or so months is finally official.

I feel safer already! :)

11:52 PM  

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