2008 Final Index Performance Numbers

Dec 31, 2008: 8:48 PM CST

Courtesy BarChart.com, here are the year-to-date performances of a broad assortment of major market Indexes, including the US Equities, CRB Commodity Index, and Dollar Index.

You can view the chart yourself at BarCharts.com or use your own program to display other index and stock returns for 2008.  Just be sensitive to seeing lots of red and don’t be disappointed by lots of minus signs.

Let 2008 be a reminder that bad things can happen to investors and traders, and that it’s not always safe to “Buy and Hold” or that “Diversification Always Works.”

Yes, the market will rebound from these levels – eventually – but it may take years to get back to the equity peaks of 2007.  In addition, those who diversified in 2008 – hoping to mitigate risk – experienced the phenomenon that in a down-market, almost all correlations go to 1.0.

Real Estate? Down depending on location location location.
US Equities? Down 40%
Foreign Equities? Most Down over 40%
Oil? Down 60% for the year ($WTIC)
Gold? Up about 2% for the year ($GOLD)
TLT Bond FundUp 30% (I had to find something up)

In fact bond/note prices did well as some yields fell to record lows this year.

Take this weekend if not sooner to reflect on the lessons of 2008 and how you can identify problems, create solutions, and set goals to achieve and a plan of action to achieve them in 2009.

Corey Rosenbloom
Afraid to Trade.com

Hat-tip to Brian Shannon of AlphaTrends for also posting end-of-year numbers on key ETFs.

9 Comments

9 Responses to “2008 Final Index Performance Numbers”

  1. toad37 Says:

    Thanks for running such a terrific and helpful trading blog Corey. It is a pleasure to read each and every informative post! Happy New Year Corey. Cheers!

    Toad

  2. Lisa Says:

    Happy New Year, Corey. I love your site.

  3. Trader Mom Says:

    I believe it might be a good time to invest in oil.

  4. toad37 Says:

    Trader Mom- I agree, but only for a bounce imo.

  5. Paul Says:

    Hi Corey, obviously treasuries outperformed this year. What is your outlook on them for 2009? I am thinking about a small position short on 10-yr futures. At $1000 per full point per contract it is a risky but a rewarding proposition. Would you be so kind and perhaps run an analisys with chart breakdown for 10 year t-note futures? ZNH9 is a current contract…
    Thanks, Paul.

  6. Corey Rosenbloom Says:

    Toad,

    Happy New Year to you as well!

  7. Corey Rosenbloom Says:

    Lisa,

    Thank you for reading and for the well-wishes. Happy New Year to you as well!

  8. Corey Rosenbloom Says:

    Trader Mom,

    I’m getting irresistibly bullish on crude but only from a contrarian standpoint and probably because I’ve been conditioned to accept $100 oil and prices at the pump above $3.00 per gallon – it doesn’t compute that prices are as low as they are. But as we’re continually discovering, just because something is perceived as cheap doesn’t necessarily mean it’s a buy.

    Right now the trend is so strong that we’ll need a technical reversal to get bullish again, though there is a massive positive momentum divergence setting up.

    I enjoy your site. Like your ideas.

  9. Corey Rosenbloom Says:

    Paul,

    I actually expected treasuries to do better than they did. It really wasn’t until the end of the year that they caught fire. A large part of the move was in the last two months.

    I’ll try to tackle the analysis but at first glance, I agree with some of the readers who said that parabolic moves tend to end badly (meaning after the surge, there is usually a collapse) so it would be a risky but perhaps profitable idea.