Wall Street Finishes Year on Up Note
NEW YORK - As they've done every year since the Depression, traders at the New York Stock Exchange closed out the year with a song. They've had a lot to sing about this year, as all three major indexes had double-digit gains, reports CBS News correspondent Anthony Mason.
"The great Lehman panic is finally behind us. We're back at prices we were at just before Lehman went under," said Art Cashin with UBS Securities.
The rally ignited in August after fears about the European bank defaults faded.
"I think it was a mindset change," said Alan Valdes with DME Securities. "I think people just felt more confident."
Stocks are still well shy of hitting their all-time highs. Despite the markets' sharp climbs and steep falls over the past 10 years the Dow will end the decade very close to where it began it.
"It would indicate the so called strategy of 'buy & hold' shouldn't be held. You know, you've gone nowhere," Cashin said.
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The Dow started the decade around 11,000, then plummeted after Sept. 11. It recovered and rallied to an all-time high of more than 14,000 before the financial crisis cut it in half. Even with the latest rally, the Dow has gained just 500 points over the last 10 years.
"But I think we're going to build from here," Valdes said. "It feels like it. It really does."
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The volatility scared many investors out of the market.
"But over the last two years, from what I've seen, it's picked up a little bit," said Rizkah Helpern. "So I do slowly plan to get back in after the first of the year."
"I think in the long run it'll all come back and the market is the place to be," said Todd Sherstadt.
With the economy finally picking up speed, investors may not have to wait until the sun shines- the weather forecast is looking brighter again.
