Nasdaq · April 19, 2006
A year when money was everywhere
+24.51%
trough back to the old high
245 trading days · 2005-04-28 → 2006-04-19
What happened that day?
- From the low on 28 April 2005 to the high on 19 April 2006, the Nasdaq rose 24.51% over 245 trading days
- The striking thing is that it rose while the Fed kept raising rates
- The price of short money went up but the price of long money did not, because savers around the world were buying US government bonds
- So the cost of buying a house or buying a company stayed where it was. Takeovers grew sharply in this period
- The Fed chair of the day said publicly that he could not explain it. In hindsight this was the foundation of the bubble
- The gains here came more from the quantity of money than from earnings, and that money blew up in house prices a few years later
Sources
Every figure on this page is recomputed from the original daily closing prices and checked against them at build time. The account of what happened is written from the sources listed above.