2008: Second Worst Year Ever!

2008 Will go into the record books as the 3rd worst year ever for equity investors when using the Dow Jones Industrials. With its 34.15% loss the Dow is only surpassed by 1931's 52.67% loss! It was also the 11th year {excluding dividends} since 1896 that the Dow lost more than 20%. The good news according to Bespoke Investments is that the year after the Dow posts 20+% declines is generally a good one for investors. In all the Dow has risen 80% of the time with an average return of 25.06%.

Here's hoping 2009 is on the mark in that regard. We could all sure use it!

Source: Bespoke Investments 12.30.08. Subscription required.

*Long ETF related products invested in the Dow Jones Industrial Average.