Fidelity Select Fundranker

Fundranker Blog—Nasdaq Recoups Great Recession Losses

Nasdaq Recoups Great Recession Losses

We track the performance of the Nasdaq Composite Index so that we can compare performance of Fundranker’s Top Eight Model Portfolio to it. The Nasdaq Composite Index itself is a price-only index, meaning it does not account for dividends paid by its underlying stocks, so we measure the Nasdaq Composite Index using Fidelity’s Nasdaq Composite Index Fund, which does include dividends, thereby giving us a total return rather than a price-only return for the Nasdaq Composite Index.

As of February 8 and 9, on a total return basis, our Nasdaq Composite Index Tracking Portfolio, based on Fidelity’s Nasdaq Composite Index Fund, completely recouped the losses it incurred during the Great Recession. Our Nasdaq Composite Index Tracking Portfolio stood at $57,472.15 as of October 31, 2007. It fell 55.1% to a low of $25,806.24 on March 9, 2009, during the Great Recession. On February 9, it stood at $57,489.51 for a gain of 122.8% from that March 9 low.

Note that calculations using the Nasdaq Composite Index itself, because it is a price-only index and does not account for dividends of its underlying stocks, give slightly different numbers for Great Recession losses and current bull market gains. The Nasdaq Composite Index stood at 2,859.12 on October 31, 2007, at the end of the previous bull market, at 1,268.64 at its March 9, 2009, Great Recession low, and at 2,789.07 on February 9. Using these figures, the Nasdaq Composite Index's price-only Great Recession loss was 55.6%, and its price-only bull market gain was 119.8%. As of February 9, the Nasdaq Composite Index lacked 70 points of regaining its 2007 high.

Posted 2/9/11 8:45pm ET in Market