So the optimists have beaten up the pessimists and our portfolios are now up around 8% since the start of the year based on the S&P/ASX200 index. The index is now at 4,408.3 and is up 10.6% since the most recent low of 3,985 on June 4.
In the US, the Dow Jones index is at about 13,570 and near its all-time closing high of 14,164.53, but we are still a long way from our record close of 6,828.7 on November 2, 2007. These comparisons partly explain why I agree with Phil Ruthven of stats collector IBISWorld, who argues that there will be a big pop – over 40% – for our stocks when the worst of news is behind us.
Ready to run
I think that process is happening, though there are still challenges out there, such as China’s recovery, the US election, the US fiscal cliff issue and what the Europeans get up to.