Sep 15, 2018

When crisis hit, we fell far and fast

What America experienced in 2008 wasn't just the start of a recession, or a negative market cycle. We've had lots of both. Nor was it the realization of an existential outside threat, like war or natural disaster.

The reality: Instead, it was a sudden and pervasive fear that the foundation of America's economy had crumbled, in a way that few had ever previously internalized. Not paranoia, but justified panic.

Data: Yahoo! Finance; Chart: Harry Stevens/Axios
  • The S&P 500 fell 28% in the 22 trading days after Lehman went bankrupt. It would keep sinking for another six months, losing nearly half its value.
  • The VIX, a measure of stock market volatility, had all ten of its all-time highs in October and November 2008.
  • Gross domestic product shrunk by 8.9% in Q4 2008, its worst quarterly mark in 50 years.
  • The unemployment rate nearly doubled between January 2008 and January 2010, rising from 5% to 9.8%.
  • Home mortgage defaults climbed from 3.66% to 11.54% over the same time period.

🎧 Go deeper in our latest Axios Pro Rata podcast, with Dan Primack and Fox News' Neil Cavuto.

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AMD's hot 2020 start could lead to another S&P record

Data: Investing.com; Chart: Axios Visuals

AMD was the best-performing stock on the S&P 500 in both 2018 and 2019, and it got off to a hot start in 2020, rising 7.1% on Thursday to touch a fresh all-time high.

The state of play: The stock rose nearly 80% in 2018, despite falling 40% during that year's disastrous fourth quarter, and it gained 148% in 2019, according to MarketWatch. The company's previous record high stock price was set June 21, 2000.

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When war pays dividends

Illustration: Aïda Amer/Axios

War. What is it good for? The stock market, it turns out.

The big picture: Don't pay too much attention to short-term stock-market gyrations. When you take a step back, it looks like war tends to be good — not bad — for American stocks.

Go deeperArrowJan 9, 2020

Podcast: 10 years in 12 minutes

It's the final Axios Pro Rata Podcast on 2019 — and of the decade. Dan and Mike Allen examine the most consequential collisions of tech, business, and politics from the last 10 years.

Go deeper: The decade that blew up energy predictions

Keep ReadingArrowDec 23, 2019