The Markets, Then and Now

10 years have passed by in a heartbeat.

It seems like it was just yesterday when I was sitting in front of my computer screens, waiting for another day of trading to get underway when CNBC first cut to a shot of the first burning WTC tower.

Much has changed in the world over the past 10 years. There have been multiple wars, multiple recessions (or a recession and a depression, depending on who you ask) and numerous tragedies. The housing market imploded, the stock market tanked and the price of gold and oil soared.

The day before the September 11th terrorist attacks, here is where the markets closed at:

DJIA - 9,431.07
NASDAQ - 1,669.94
S&P 500 - 1,073.15

On September 9th, 2011, the markets closed at:

DJIA - 10,992.13
NASDAQ - 2,467.99
S&P 500 - 1,154.23

To say that the markets have been highly volatile over the past 10 years would be a dramatic understatement.

The DJIA (Dow Jones Industrial Average), for instance, soared to over 14,000 points in October of 2007, only to crash to under 7,000 points less than two years later.

A single share of Apple would have cost you $8.69 back on September 10th, 2001 (split adjusted). Now? $377.48 a share. An insane amount of iPods and iPhones and iPads have been bought between then and now, which has made Apple into one of the largest companies in the world.

Facebook? Ten years ago, it didn't exist. Twitter? Ten years ago, it didn't exist. Google? Ten years ago, it wasn't anything close to the behemoth that it currently is today.

Back in 2001, an ounce of gold would have cost you less than $300. Today? $1,858.60 an ounce.

Back in 2001, a gallon of gasoline would have cost you around $1.50. Today? Around $3.67 a gallon.

Back in 2001, a barrel of oil would have cost you around $27.50. Today? Nearly $90.

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The average American feels much less wealthy than they did 10 years ago. Volatile markets are basically back to where they were in September of 2001, which means that many investment portfolios are flat or down. Combine flat to down returns with inflation, and many portfolios have been downright massacred over the past decade.

On top of that, the housing market has completely fallen apart in the United States, which has resulted in the net worths of many Americans being obliterated.

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In the end, all that we can really hope for is that the next ten years is significantly better than the last ten years.

Filed under: General Knowledge