Dow and S&P 500 at 1997 lows
I had just finished my 11th grade in 1997. If I had invested money in the broad US stock market index in 97, I would have made a 0% return today. Big losses send the two major gauges to levels not seen in nearly 12 years. Ouch!! Thank God I didn’t have much money then. 
An excerpt from CNN,
The Dow and S&P 500 tumbled to levels not seen in nearly 12 years Monday, as investors continue to worry that the government’s efforts to slow the recession won’t be sufficient.
The Dow Jones industrial average (INDU) lost 250 points, or 3.4%, ending at the lowest point since May 7, 1997.
The S&P 500 (SPX) index lost 26 points, or 3.5%, ending at the lowest point since April 11, 1997.
The Nasdaq composite (COMP) lost 53 points, or 3.7%. The tech-fueled index has held up better than the rest of the market so far this year, closing at the lowest points since Nov. 20, 2008.
“It’s fear-based selling,” said Dave Hinnenkamp, CEO at KDV Wealth Management. “The fact that we’re touching these multi-year lows tells you we don’t know where the bottom of this thing is.”
“There is just nobody who wants to buy right now,” said Ron Kiddoo, chief investment officer at Cozad Asset Management.
“Worries about how long it will take for the government programs to have an impact and worries about the health of the banks and the autos are all there,” Webb said.
But there is also just the day-to-day reality that many investors are losing money and don’t know when they are going to stop losing money, he said.
The other way to look at this is that if you were waiting for a 50% discount on stocks and didn’t have the resources to buy, now or the near future *might* be a good time. That being said I feel that we are going to hear some more bad news in the coming few months.
Disclaimer: Before making any investments, do your own research. You cannot and should not invest in a stock just because a random guy on the internet thinks its a good idea. If you want to take out your money in a short time, you should not invest in stocks. If you do invest, remember to diversify your holdings.
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