Global Financial Data (4)

Historical Stock PricesThe Historical Prices page allows you to get up to 10 years of daily historical stock prices and volumes for any time period you choose. Victorian era sheet music can be purchased on eBay, or you can call your local antiques dealer to see if they have anything in stock. With a little research you could match a birthday, an anniversary of any kind, or any other significant date or life experience of your intended recipient. As we go through the historical examples below, it is easy to see that it is quite common and rational for markets to be more difficult and indecisive when the Fed is opening up an almost limitless number of what if” scenarios as they begin to shift interest rate policy. In 2015, the stock market has gone up and down, but has made no progress between December 2014 and the present day.

The first thing that jumps off the chart below is the stock market was indecisive, going up and down, but making no progress between May 1983 and December 1984 (sound familiar?). Before we move to the what happened next” chart, take a moment to make a mental note of the look” of the 50-day and 200-day moving averages in the indecisive 1983-1984 chart above. Discipline and patience were rewarded in 1987 as the stock market rallied 33.7% over the next eight months.

The 1987 crash is not shown in the chart below for a reason; stocks rallied significantly for several months following the rate-induced indecisive period. Similar to the previous historical examples, the market showed some erratic behavior in 1988, making no progress between January and June, and again between mid-June and early-December. So, investing today, with these historical averages, 1,900 goes to 4,224 in 20 years.

Nothing is more frustrating than breaking your rules or throwing in the this does not work” towel just prior to a big hey, discipline really does pay off!” move. Given the charts presented here, it is fair to say stocks typically go up after the first rate hike, but not always.” The exception was 1999-2000. As shown in the chart below, stocks did gain about 8% once the S&P 500 left the orange box, but the easier trend eventually was to the downside. The historical examples presented here tell us 2015’s frustrating market is not all that rare when it comes to a new Fed rate-hike cycle.

Like 2015, 2004 featured some big swings up and some big swings down; it also featured a go nowhere” market with the S&P 500 making no progress between January and November. The New York Stock Exchange was founded in 1817, although its origins date back to 1792 when a group of stockbrokers and merchants signed an agreement under a buttonwood tree on Wall Street.Historical Stock Prices

Historical Stock Prices