The S&P 500 closed at 1050 in September 2010. Today it stands at 1,350 – almost a 30% move in 8 short months.
This move came despite the following major (once in a life-time?) events:
- The Arab Spring
- The Japanese earthquake and ongoing nuclear disaster
- Europe’s debt and banking crises
With worries like these, one has to wonder where the S&P 500 would be without them? Ironically, that is not an easy answer. Could it be lower?
One can see the silver lining in each of these uncertain events:
- The Arab Spring may be the catalyst for outstanding economic growth in the region.
- Rebuilding in Japan will spark economic activity.
- European countries (like the US) instituting better economic policies and reforms.
What is the next wall or next black swan to overcome – or not?