Do you know that in the last century, every year that ends in "5" is a great year at Wall Street? According to CBS MarketWatch, Dow Jones Industrial Average (DJIA) gained an average of 38.5% in these years.
The scoreboard:
Year/DJIA 12-Months Gain %
1995/36.0%
1985/28.2%
1975/43.0%
1965/10.9%
1955/44.0%
1945/29.0%
1935/42.7%
1925/32.3%
1915/80.5%
1905/38.7%
Average gain/38.5%
But does it mean 2005 will also be a great year? Read on the article as the author plays devil's advocate. You all know I am in the bear's camp, and I like the article's conclusion that when a market is lack of enough bears, it is on the brink of freefall. Let's wait and see what 2005 will bring to us.