Bull market booms and busts

An analysis of results from 500 major U.S. companies finds one in five report “adjusted” profits 50% or more higher than net income, boosting share values. The current bull market is now in its seventh year
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1982-87 Length: 1,839 days Increase in stock market value (DJIA*) UP 350%
*Dow Jones Industrial Average

Aug 1982-Aug 1987: Dow rises from 776.92 to record high of 2,722.42, fuelled by merger mania

Oct 19, 1987, Black Monday: Crash begins in Hong Kong and spreads
as investors panic, selling stock Share prices plummet: 60% (New Zealand),
46% (Hong Kong), 42% (Australia), 31% (Spain), 27% (U.S. and UK) and 23% (Canada)

2002-07 1,839 days Increase in value UP 194% (DJIA)

1987-2000 4,494 days Increase in value (NASDAQ†) UP 1,171% †Benchmark technology stocks

Apr 1987-Mar 2000: Nasdaq Composite soars more than 1,100%, from 430.90
to peak at 5,048.60, driven by frenzied risk-taking and artificially inflated earnings and valuations during dot-com boom Nasdaq loses 78%
of value as it falls to 1114.11 by 2002 U.S. and EU economies go into
recession

Oct 2002- Oct 2007: Dow rises from 7,286.27 to peak at 14,164.53 before losing 54% of market value following Wall Street’s disastrous subprime credit meltdown

2009- 2,284 days (to June 9) Increase in value UP 280% (DJIA)

Mar 2009-Jun 2015: Dow surges from 6,547 to peak of 18,312.39 on May 19, driven by record profits
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Sources: Associated Press, S&P Capital IQ, Daily Closing

Value of the Dow Jones Average, Samuel H. Williamson. Picture: AP

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