Only ONE Dow Stock Is Up This Year!

October 9, 2008

Only ONE stock in the Dow Jones Industrial Average is up this year. Can you guess which one it is? Look at the graphic below to find out.

As you can tell from the graphic below, the Dow has taken a beating this year. The index itself is down over 35% year-to-date (it’s down 28.75% on a total return basis as of yesterday’s close). Of the 29 stocks that are down this year, NONE are down less than 10% (keep in mind that I’m not including dividends on the individual stocks, which makes these numbers slightly worse than they really are).

How low can they go? And how far down do these stocks have to go before they’re considered bargains? That’s anybody’s guess. Although I’m not calling any of these stocks bargains, I will say that they have to be a lot closer to being bargains than they were at the beginning of the year.

More on this in the future…

12 responses to Only ONE Dow Stock Is Up This Year!

  1. discretionaries have much further to go, as people stop spending on non-essentials. this would include things like cable and cellphone companies too. financials are simply going to be rocky and they will go down furhther. with the short ban lifted, we are heading to 8000.

    i just have one question: where the hell is the urgency on Paulson’s part that he and Bernanke were spewing during their testimonies on congress? none of the $700b has been used yet except to pay salaries to the “advisors”. Paulson warned about collapse of the markets without the bailout, well since he hasn’t acted with the bailout this is exactly what we are getting.

    7000 as bottom. i think people who are panicking will have cashed out by week’s end. shorts are going to continue pushing the market down.

  2. oh, ok, 7000 was arbitrary. i keep buying as we ride down, remain flat, and on the way up.

  3. Where do you find the ytd percentage change for the Dow? Can you also get percentage changes for any arbitrary time period and/or other indexes?

  4. MO is down that much because it spun off Phillip Morris(PM). I suspect the real percentage is much less drastic.

  5. Tim, haven’t they suspended being able to short stocks right now, I just kind of remember hearing that in the news.

  6. Philip, short ban has been lifted today. Also, it only affected the financials and couple of non-quite-financial stocks (like CVS, IBM, etc.) who somehow managed to be included.

    BTW – IBM has just pre-reported excellent earning and good guidance, and it still went down… although not as much as others.

    One problem that worries me is that many younger people will lose confidence in the market. So who will be buying when it’s all over? I am itching to buy – I was about 60% invested before it started, but failed to get out on time – but I really wonder who’ll be buying. I actually just finished watching CNBC and this question was raised. So I figured I’ll look at the sentiment in these blogs.

  7. Jason,

    I got the ytd percentage change for the Dow from their website:

    http://www.djindexes.com/mdsidx/index.cfm?event=showavgIndexData

  8. DBJ,

    Good catch. Thanks!

  9. kitty, unless the economy tanks in depression where people en masse lose jobs, i doubt mentality will change. we have a large u.s. population that does not stick with anything for very long (e.g. flipping houses, hopping jobs, swapping credit, leases, etc), and i think this is one of the fundamental indicators of financial behavior. although people are cashing out in mass, they will equally take large risks to make up for losses. this will be the next big danger in the markets. it’s an improper evaluation of risk: people are willing to take on far too much risk when markets are bubbling, but are not willing to retain that risk when markets are troubled.

  10. I’m one of those that will be investing heavily. I recently started working as a government contractor instead of full-time military. Now instead of 5% of my base pay going into my TSP account, 21% (which maxes me out) of my pay will be going into my 401k. For me personally, the market couldn’t have tanked at a better time. I still have another 20-25 years until I retire and this will be extremely helpful in the cost averaging for my investments.

  11. Gaurav here…no surprise here that Walmart is doing well. Going by history, it seems to be the only stock that is recession proof.

  12. @HisMoney: you probably also have ESPP through your company too.