CNN has a review of 2003 in the markets and the news is good. After three straight years of downturns, the bear market is finally on its way out. The Dow went up 25.3%, the S&P Index climbed 26.4% and the NASDAQ went from the doldrums of the tech bubble to a 50% gain in 2003.
What does this mean? It means that the economy is poised for growth, and the prophets of doom *cough*Paul Krugman*cough* got it wrong. It also means that the macroeconomic policies of the Bush Administration worked exactly as they were advertised to. By providing a pro-investment stimulus the millions of Americans whose retirements are tied to the markets can now breathe easier.
Now, here’s to an even more prosperous 2004!
