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Lesson 3a: Market Snapshots (Updated 11/04/2005 06:26 PM)
I've been
looking
so long
at these
pictures
of you
That
I almost
believe
that
they're
real
I've been
living
so long
with
my pictures
of you
That
I almost
believe
that
the
pictures
are
All
I can
feel
--The Cure
Objective
To provide a sense of direction in key US market indices (in lieu of our most recent lesson).
History Matters!
On the heels of our most recent lesson, I wanted to share some charts of major U.S. market indices. These are all weekly charts that go back to 1990. Why is viewing this stuff important? Well, it's hard to develop an awareness of today's financial markets without a sense of where these markets have come from.
Charts courtesy of StockCharts.com
Quick Quiz...
3a.1) A major high point in many key US stock market indices occurred in the year:
- 1992
- 1997
- 2000
- 2002
3a.2) In early 2000 the S&P 500 Index printed a value of about 1550. Compared to then, the current value is:
- More than 10% higher
- More than 10% lower
- About the same
3a.3) Which of the following US stock market indices experienced the sharpest increase and decline over the past 15 years?
- Dow Jones Industrial Average
- S&P 500 Index
- NASDAQ Composite
- Russell 2000
3a.4) Which of the following best describes trends in 10 yr Treasury yields over the past 15 years?
- The trend has been up.
- The trend has been down, but with some recent hints that the downtrend may be completed.
- Yields have gone sideways for the last 15 years.
Answers
3a.1) c 3a.2) b 3.3) c 3.4) b
