An echo in the markets

What happened in 1983 stock market?

The Dow Jones industrial average posted a 20.3 percent gain in 1983, but that was as nothing compared with the 25-fold rise in the stock of Dento- Med Industries, an over-the-counter company that has developed a new type of false teeth.3 Jan 1984

High rates for the decade to come do not need to preclude a rising stock market.

What were the high interest rates of the 80s?

Interest rates reached their highest point in modern history in 1981 when the annual average was 16.63%, according to the Freddie Mac data. Fixed rates declined from there, but they finished the decade around 10%. The 1980s were an expensive time to borrow money.16 Feb 2023

46 47 51 high inflation rate see inflation table in linked article.

Towards the end of 1949 was a major bottom. The bear market inflation caused in larger part from 1946 was over after three years.

We have seen 2022 and now 2023 is half over making 2024 interesting. Note the rise for a quarter in 1948.

The duration of the 1970s early 1980s bear market was rooted in the lack of free markets for interest rate tools. S&Ls guaranteed stable interest rates when in fact higher interest rates were needed. By 1979 the demand in the US economy is growing again but Volcker is raising rates. This prolongs the bear market.