Oct. 30 - At this week’s Investment Policy Committee meeting, we discussed how deeply the S&P 500 may fall following its peek above the 1100 level.
On October 15, the day after the DJIA closed above 10000, the S&P 500 closed at the 1098 level, after peeking its head above the 1100 threshold on an intra-day basis and registering a near 4% month-to-date advance. Since then, however, it’s been all down hill. As of October 28, one day before the 80th anniversary of the great crash on Black Tuesday, October 29, 1929, the S&P 500 had declined 5%, giving back all of its gains for the month, and then some. But a better-than-expected preliminary Q3 GDP report caused investors to be hopeful in early trading on the 29th. But will the recovery last?
