Word: dowe
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Dates: during 1980-1989
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...owners of common stocks, and 1981 was no exception. Mauled by high interest rates, uncertainty over Reaganomics and nervousness over recession, stock prices failed to catch fire after climbing to the year's high back in April. With only a few days of trading left this year, the Dow Jones industrial average, the most widely watched market indicator, stands at 873, down 91 points from the 964 closing on the last...
That is hardly heartwarming. But neither is it cause for depression or panic selling, says Dow Watcher and Market Analyst William M. LeFevre, 54, of the New York investment firm of Purcell, Graham & Co. The market, he says, is behaving as it almost always has during the first year of a Republican Administration...
LeFevre is one of a handful of Wall Street gnomes who try to discover a correlation between events and the stock market. In 1974 he began tracking the performance of the 30 Dow industrial stocks through the first year of Republican and Democratic Administrations going back to William McKinley in 1901. LeFevre discovered that the Dow rose during the period for every Democratic President from the fourth Inaugural of Franklin Roosevelt to Lyndon Johnson. The only exception in recent times was Jimmy Carter's first year, 1977, when the indicator dropped...
...several months the novelty and unabashed boldness of the Reagan plan worked like a miracle drug. Interest rates began to creep downward, and the Dow Jones industrial average hit an eight-year peak of 1,024 in April. But then moneymen began growing jittery as some of Wall Street's most influential economists, led by Henry Kaufman of Salomon Brothers and Albert Wojnilower of First Boston, warned that Reagan's goals of deep tax cuts, large increases in defense spending and a balanced budget were inconsistent and impossible to achieve. Nicknamed Dr. Doom and Dr. Gloom, Kaufman...
...reaction of the financial markets to the program was disastrous. Fearing huge budget deficits and more inflation, investors began stampeding to sell. Bond prices fell to record lows, and interest rates surged anew. By the time the Dow Jones average bottomed at 824 in September, blue-chip stocks had lost nearly 20% of their value in April...