Investors will likely remain nervous and pessimistic for awhile, though, but one analyst says there’s no reason to be as pessimistic as people were during the Great Depression.
Where do we go from here? Two problems need to be solved before the bull can storm the markets once again: stocks need to recover from the hangover of the high prices of the late 1990s and the continuing effects of the low interest rates instituted by the Federal Reserve in 2001 and again today. Those low rates bumped up corporate profits, but set off borrowing excesses.
Graphic courtesy of the Wall Street Journal.