When the S&P 500 fell to 1407 on the Monday after last Thanksgiving, the stock index was down 10.1% from its October all-time high of 1565. It was also the first time the S&P 500 had fallen at least 10% from a previous high in more than 4 ½ years. That historical perspective makes what has happened in the first 13 trading days of 2008 (i.e., through last Friday) all the more disappointing. The index’s drop of 9.8% YTD was initially driven by fears of a possible recession but the decline has been accelerated by the fear and panic of frustrated investors (source: BTN Research).
