I’m anticipating more of the same come the next crisis in the market. They saw their lows in October 2008, and by March 2009 they actually benefitted from all of the chaos in the broad market. Note the performance for gold, silver and the XAU in the table above (#1,2&3). Should this index break below its BEV -10% level, before everything else, that wouldn’t be a positive development for the rest of the stock market. So, I’m keeping an eye on the NYSE Financials. Actually, I believe whatever ailed the NYSE Financial Index in 2009, is much worse twelve years later, even if it has begun making new all-time highs in the past year. Whatever caused the NYSE Financial Index to collapse by 80% in March 2009, in the table above, hasn’t been corrected in November 2021. Note: I redacted the BEV column as the data was very wrong and I didn’t want to spend the time to make it right. But as seen below, the NYSE Financial Index was the worst performing major stock index during the sub-prime mortgage bear market. Some of my readers will observe that had I used 05 March 2009, at the 80% bottom of the NYSE Financial index as a start date, these financial companies’ performance would be very different. And after all that, since 04 June 2007 to the close of this week, the NYSE Financial Index is up by only 1.73%.
They (the “policy makers”) also rewrote the accounting standards, so some of these companies didn’t have to declare bankruptcy.
These are companies that the Federal Reserve and US Government gifted trillions of dollars during the dark days of 2007-2009. If you return to the table above, I placed a table for the 15 Year Performance of these major indexes, with the start at 04 June 2007, at the top of the sub-prime mortgage bull market for the NYSE Financials. It’s taken over a decade before the NYSE Financial Index recovered the losses it took during the sub-prime mortgage bear market. During the sub-prime mortgage debacle, this index declined 80% from its June 2007 high to its March 2009 bottom. Here’s a chart for the NYSE Financials going back to 2004. During the subprime mortgage bull market, the Dow Jones saw its last all-time high on 09 October 2007, but the NYSE Financial Index saw its last all-time high four months earlier on 04 June 2007. But this is an important index, in a canary in the coal mine sort of way.ĭuring the sub-prime mortgage crisis of 2007-09, it was these financial companies that took everything else down with them. From Monday to Friday’s close, it lost just under 3 BEV points. I’m looking at the NYSE Financial Index above, (#18) in the BEV value table above. Look at Thursday and Friday below a few BEV Zeros, with the rest, if not the XAU, closing within scoring position. So, we are looking at nothing new going on below, but a continuation of more of the same of what we’ve seen in the past year.Īs for the other major market indexes I follow, as seen in the table below, the story they tell of the market is much the same as told by the Dow Jones for the past year, with most closing daily at either a BEV Zero, or within scoring position of a new all-time high. The best way to describe this market action would be to recognize the Dow Jones continues trading as it has for the past year closing daily either at a new all-time high, or within scoring position of one within 5% of a new all-time high. So, the Dow Jones may have stopped going up, but it definitely isn’t going down. And after two weeks of that, the Dow Jones closed the week with a BEV value of -2.28% well within scoring position. Which is a bit amazing, as in the last nine NYSE trading sessions, the Dow Jones closed up for the day in only two, and down for seven of them. The Dow Jones closed down from last week, but not by much. I’ll be back on the first Sunday of December. Publishing note: I’m taking next week off for Thanksgiving a holiday where Americans thank God for the many blessings he has sent our way.