Stomping good times of stock market
Updated: 2015-02-19 15:47
By KRISTINE YANG/ALFRED ROMANN(China Daily Europe)
This sheep year was marked by the Islamic Revolution in Iran that ended a pro-Western regime and replaced it with the Islamic republic of today. That was a turning point for the oil market. Iran has the third-largest oil reserves in the world.
In the same year the average daily volume of trade on the New York stock exchange reached 32 million shares. The S&P 500 Index rose 12 percent and DJIA 4 percent during the year.
Marking the humble beginnings of a regional grouping that is shaping itself into an economic powerhouse today, the Association of Southeast Asian Nations was founded in August this year of the sheep, which ran from Feb 9, 1967 to Jan 29, 1968. The ASEAN Economic Community is poised to launch in the year of the sheep 2015.
In February 1967, US forces began the largest offensive of the Vietnam War. Four months later, the conflict in the Middle East that became known as the Six-day War ended with Israel, supported by the US, defeating Egypt, Jordan and Syria.
The year 1967 was remarkable for Wall Street, with average daily trading volumes increasing from 8 million shares at the end of 1966 to 10 million shares in 1967, thanks to a business boom.
It was during this year of the sheep－from Jan 24, 1955 to Feb 11, 1956－that the former Soviet Union and seven East European countries signed the Warsaw Pact, and West Germany became a sovereign country.
Through the year, the S&P 500 rose 26 percent and the Dow Jones 21 percent. The middle of this year marked the end of a little-known but remarkable bull market in the US that had started in 1949 and saw the DJIA triple in a little more than seven years.
The year of the sheep that ran from Feb 5, 1943 to Jan 24, 1944 brought with it the beginning of the end of World War II after the US got involved.
WWII, for all the tragedy and suffering that came with it, helped end the Great Depression. It also heralded a period of high inflation in the US, which forced the government to freeze prices, salaries and wages.
Markets and economies suffered terribly as the Great Depression took hold in this sheep year that ran from Feb 17, 1931 to Feb 5, 1932.
The DJIA lost 89 percent of its value from 1929 through 1932. The period was marked by financial collapse, hunger and severe unemployment that would last until WWII at the end of the decade.
In the UK, a run on the British pound led to political and economic crisis in the same year that Mao Zedong proclaimed the Chinese Soviet Republic.