Stock market comeback is actually slow
TEXT OF STORY
Bill Radke: It was exactly one year ago today that Wall Street hit rock bottom. Since then, the Dow has climbed back better than 60 percent, S&P 500’s up almost 70 percent. The Nasdaq is 83 percent higher than a year ago. On the other hand, our senior business correspondent Bob Moon says compared to past stock-market comebacks, the task of rebuilding is going more slowly than usual.
Bob Moon: One ever-so-carefully placed shovelful at a time, Wall Street investors have spent 12 long months filling in the crater. At first glance, the progress might look impressive: Taken collectively, stocks are up 70 percent. But skeptics point out the market is really still 25 percent in the hole, measuring from the high mark set in October 2007.
Jefferies and Company analyst Art Hogan suggests maybe the foundation is finally in place for some real gains:
Art Hogan: I think right now, we’re pricing-in the last 12 months, not the next 12 months. I think when we start looking ahead to what the next 12 months might bring, this market could find the “path of least resistance” higher, not lower, than where it is now.
Since October, though, the market’s been stuck in a tight trading range of just 10 percent. And Seaport Securities broker Ted Weisberg doesn’t expect much to change:
Ted Weisberg: It is a very unexciting scenario, it’s terrible for business, and it’s not very exciting for investors. But in my opinion, that’s going to be reality, and that’s how we have positioned our portfolios and our customers’ portfolios.
Weisberg says digging out is likely to remain tedious work for some time to come.
I’m Bob Moon for Marketplace.
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