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Fundranker Blog—New Market Rally

New Market Rally

The market fell to new multi-year lows on Monday, March 9, 2009. From recent market highs reached on January 6, 2009, the peak of what turned out to be a bear market rally followed by new lows, through March 9, Fundranker’s Top Eight Model Portfolio fell 23.59%, while Fidelity’s Spartan 500 Index Fund (which tracks the S&P 500 Index) fell 27.19%, and Fidelity’s Nasdaq Composite Index Fund (which tracks the Nasdaq Composite Index) fell 23.03%.

Since the market lows on Monday, March 9, Fundranker, the S&P 500 Index, and the Nasdaq Composite Index have come roaring back with gains of 21.36%, 28.41%, and 33.61%, respectively. Is this just another bear market rally, similar to the one that peaked on January 6, with further new lows ahead, or is it the beginning of a real recovery? The Nasdaq Composite Index finally topped its January 6 high as of April 9, on a number of days since then, and again as of April 24. Notice it took a 30% gain to undo a 23% loss--that's because the gain was figured on the March 9 low, while the loss was figured on the January 6 high. The S&P 500 Index and Fundranker still have quite some way to go to remake their January 6 highs. What's next?

See our Spring Rally and March/April Rally posts for newer information on this rally.

Posted 4/26/09 6:05pm ET in Fundranker, Market