By Victor Reklaitis, MarketWatch
The S&P 500 these days is dilly-dallying just below last month’s all-time high.
But if you zoom out, it’s a more impressive picture, with the stock benchmark up 141% since Lehman’s bankruptcy on Sept. 15, 2008.
And that watershed moment for the global financial crisis seems like the topic du jour.
“Everyone is reflecting upon the 10-year anniversary of Lehman Brothers’ bankruptcy filing,” writes JonesTrading’s Mike O’Rourke.
While there’s going to be scads of anniversary commentary, it’s right to look back and learn, says Josh “The Reformed Broker” Brown. “None of it is extraneous or tedious in my opinion. We have to remember it, the people, the details, the opinions, the turning points,” Brown writes .
So our call of the day focuses on Lehman’s lessons for investors. It comes from two sources — DataTrek Research co-founder Nicholas Colas and Andrew Thrasher, a portfolio manager at Financial Enhancement Group and the founder of Thrasher Analytics.
“Tech /zigman2/quotes/207444675/composite XLK +0.76% , of course, is the largest reason the S&P 500 is 80% higher than its pre-Lehman highs,” Colas writes . The gauge is 84% above its pre-crisis peak, to be exact, and that old high was achieved on Oct. 9, 2007.
The big gains for Apple /zigman2/quotes/202934861/composite AAPL -0.06% , Google parent Alphabet /zigman2/quotes/205453964/composite GOOG +1.61% /zigman2/quotes/202490156/composite GOOGL +1.85% and the like provide “an object lesson in the importance of technological innovation in driving stock prices over the long term,” Colas adds. “That, in the end, is the most important takeaway from Lehman Brothers and the financial crisis.”
Meanwhile, Thrasher says he developed an “aversion to risk” due to the crisis, but he’s turned that into a “positive professional attribute,” rather than grounds for staying totally in cash. He warns that you need to get in the investing game, if you’re still sitting on the sidelines after being spooked by the 2008-9 selloff or subsequent volatility.
“I hope others in my generation can shed their fears of investing,” Thrasher writes . “A lack of exposure to compound interest and market growth will hold back countless millennials unless action is taken soon.”
Key market gauges
Futures for the Dow , S&P 500 and Nasdaq-100 are lower. That’s after the Dow /zigman2/quotes/210598065/realtime DJIA -1.39% dipped yesterday, while the S&P /zigman2/quotes/210599714/realtime SPX -0.82% and Nasdaq Composite /zigman2/quotes/210598365/realtime COMP +0.01% snapped four-session losing streaks.
Europe /zigman2/quotes/210599654/delayed XX:SXXP -3.54% is falling, after Asia finished mixed. Oil and the dollar index /zigman2/quotes/210598269/delayed DXY -0.39% are gaining, while gold is losing ground. Bitcoin /zigman2/quotes/31322028/realtime BTCUSD -0.59% is changing hands around $6,300.
See the Market Snapshot column for the latest action.
“It really made us have a wake-up call: ‘How do we want to live our lives?’” —Federal lobbyist Scott Dacey reflects on the 9/11 attacks, which happened on this day 17 years ago.
Dacey is among the uncounted number of people who moved quietly away from their lives near the hijacked-plane strikes that killed nearly 3,000 people in New York, the Pentagon and a Pennsylvania field, says an AP report . He and his family reside in New Bern, N.C., having left Washington, D.C.