1958 Revisited By Vincent Farrell Jr. About this article: Thanks to Sydney Williams, who pointed out earlier today that the DJIA was up 34% in 1958. You may recall in my earlier missive today, I mentioned that the all-time worst GDP quarter since World War II was the first quarter of 1958, when the economy contracted at a 10.4% annual rate. As we have often said, the market can go up (indeed, will go up) while the news is still terrible. The market in 1958 clearly had priced in the bad news. The market today has priced in a lot of bad news. Whether it has priced in all the bad news will, of course, be played out the next few weeks and months. There are indications that a lot of news is discounted. Last Friday, before the Geithner rally, the market violated the 2002 low of 762 on the S&P 500 before turning up to close... Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET. Outside the U.S. and in Canada, call 1-212-321-5200. More Stories From RealMoney Durable Goods Up Move Down the Tech Food Chain Jobless Claims Still High Bulls' Tenacity Is the Big Question Mark Should You Buy It? Pharmaceutical Product Development Bad News Trumps All Support for Banks Holds, For Now Bummer, Yields Are on the Rise Money on the Line Makes a Big Difference Structured Products: Unsafe at Any Price MORE STORIES FROM REALMONEY

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