2009 Year-End Screening Review: The Bulls Stage a Rally

by Wayne A. Thorp, CFA

2009 Year End Screening Review: The Bulls Stage A Rally Splash image

What a difference a year can make. After the S&P 500 posted its third-worst decline in 2008—losing 38.5%—few investors expected the stock market to stage such a remarkable comeback in 2009. Year-to-date, the S&P 500 is up 21.3% (through the end of November). While there is no doubt many are letting out a sigh of relief, it is sobering to realize that, despite this year’s impressive gains, we are still approximately 40% off the market highs of October 2007. Adding to the trepidation is the potential for a “double-dip” recession.

Looking at the 60 stock screens AAII tracks at AAII.com we see that, in general, they too have enjoyed a rebound. Through the end of November, only five of the 60 were down for the year, while the typical screen was up 40% for the year. This makes 2009 the second-best year for our stock screens, trailing only the 55.3% median gain in 2003. Eleven of the screen

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Wayne A. Thorp, CFA is a vice president and senior financial analyst at AAII and editor of Computerized Investing. Follow him on Twitter at @AAII_CI.


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