If one had to sum up market events in 2009 with one word, “unprecedented” is what comes to mind.

At the outset of the year, things could not have looked worse for investors. The economy was reeling from the near collapse of the global financial system. And despite government intervention in the US and Europe, not to mention an “unprecedented” coordination of efforts among central banks, stock markets around the world were in free fall. The fear was palpable. Then in mid-March, the trend abruptly reversed as stocks began an extended rally that continued through to the end of the year. In Canada, the TSX climbed from the lows set in March by almost 60%, an “unprecedented” rise over such a short period of time. As a result, our benchmark index ended the year with a total annual gain of 31%. Elsewhere, the story was similar. South of the border, the S&P 500 rose 23% over the year and the MSCI world index gained 32%. (Source: The National Post, January 2, 2010)

We still have a ways to go to recapture all the lost ground during the financial crisis. But, it is fair to say that no one expected markets to come back this far this fast…