Crazy Gains Since the 11/20 Low 13 comments
- Bios & more articles
- Bespoke's blog: Think B.I.G.
- Market Research: Bespoke Premium
- Bespoke Money Management
- Bespoke Institutional
- Contact Bespoke
-
Font Size:
-
Print
- TweetThis
While no one is calling it that, we are technically in a new cyclical bull market and have been since December 8th. Since the 11/20 lows, the S&P 500 is up 24%, which meets the standard bull market definition of a 20% rally that was preceded by at least a 20% decline. But the unwillingness for the majority to call it a bull market is what bulls should be thankful for, since the market typically climbs a wall of worry where investors are full of doubt throughout the rally.
Regardless of what you call it, some of the performance numbers since the 11/20 lows are downright crazy. Even though the S&P 500 is up 24% since 11/20, the average stock in the index is up 41.25%. This means the smaller cap names in the index are up much more than their larger cap brethren. And the stocks that were down the most during the 10/9/07-11/20/08 bear are up much more than the ones that were down the least. As shown below, the average performance since 11/20 of the 50 stocks that were down the most during the bear market is 112%! The 50 best performing stocks during the bear market are only up an average of 8.3%.
click to enlarge
And while 20 stocks in the S&P 500 are down since November 20th, 29 of them are up more than 100%! Below we highlight these 29 stocks along with their performance during the 10/9/07-11/20/08 bear market. Most of these names were on the brink of collapse but have managed to survive another day. Prologis (PLD) is up by far the most at 610%, followed by LNC (393%), HIG (253%), GNW (220%), and LEN (194%). Other notables on the list of 100% gainers during the current bull include Morgan Stanley (MS), SanDisk (SNDK), Tesoro (TSO), MetLife (MET), Micron (MU), Cigna (CI), and Starwood Hotels (HOT).
Related Articles
|
-
The Seeking Alpha 100
See allThe top 100 stock
market authors
selected for publication
Seeking Alpha 100 » -
Fastest Climbers
Authors with the largestSee all
increase in followers
in the last 7 days
Fastest Climbers » -
Top Commenters
Top commenters,See all
as ranked by their peers
Top Commenters » -
Top Instabloggers
The 100 most active
Instabloggers.-
1
David Fry
-
2
TraderMark
-
3
Don Dion
-
4
Cliff Wachtel
-
5
Mike Havrilla
Top Instabloggers » -
1
-
Top StockTalkers
Top
StockTalkers.-
1
David Fry
-
2
Cliff Wachtel
-
3
Mike Havrilla
-
4
David White
-
5
Hedged In
Top StockTalkers » -
1
This article has 13 comments:
On Jan 07 04:37 AM Todd L wrote:
> This article is the stock market equivalent of the passenger in your
> car declaring, "Hey, it may be rush hour, but we're making great
> time!"
To get the best profits you had to be willing to buy BEFORE it was evident that things were already up 20 - 50%
On Jan 07 08:40 AM Tom Armistead wrote:
> I was holding HIG at the bottom, thought of buying more at 4.58,
> and didn't pull the trigger..Shock and awe. At least I held it.
On Jan 07 07:40 AM Paul Price wrote:
> All those technicians that waited for 'confirmation of the bull move'
> to get in, have missed these great gains.
>
> To get the best profits you had to be willing to buy BEFORE it was
> evident that things were already up 20 - 50%
Who knows what happens next, but I think that the strongest financials will do fine (e.g.: HIG, BAC, etc.). How long it will take to cycle through this broken economy is anyone's guess. But don't forget that stocks move in anticipation of better times. The earnings to prove it come much later. That's why you will never do well by following the recommendations of analysts at the major sell-side brokerages. They only tout AFTER the earnings are reported. Good luck.