2008 Final Index Performance Numbers

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 (DX-Y.NYB).

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 Fund:  Up 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.

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