The near-death stock market of 2008 continued to revive Friday, the first day of trading in the new year.
Market indexes rose about 3 percent, heading up for the third day in a row. Since the 2008 bottom on Nov. 20, the S&P 500 index has risen 24 percent.
Industrial companies, including Minneapolis-based Graco -- which rose nearly 5 percent Friday to close at $24.85 per share -- led a long list of gainers.
Still, investors are hard-pressed to forget the dismal declines of 2008. Last year's drop -- the steepest, fastest market fall since the Great Depression -- wiped out market gains since 2006.
Even after the December rally, the S&P 500 index was down 37 percent for the year, the Russell 2000 was off 34 percent and the Bloomberg Star Tribune index of Minnesota's 100 largest public companies had lost 34 percent. The total three-year returns, respectively, were minus 26 percent, minus 25 percent and minus 26 percent.
Regardless, a lot of market watchers are warming to the rebound.
"A lot of the bad news in the economy already has been discounted by the stock market," said David Darst, veteran equity market analyst at Morgan Stanley in New York. "The rays of hope go to lower gas prices, which puts about $350 billion more annually into the hands of consumers; low interest rates; the quantity of money is being expanded [through the Federal Reserve]; and there are $3.7 trillion in money market funds earning little, and maybe more in U.S. Treasury securities," Darst said. "If this market continues to spark, some of that cash is coming into the stock market.
"And then there is the 'Obama effect,'" he added. "[The president-elect] is seen as a skilled speaker, like a Ronald Reagan or John F. Kennedy, with the ability to inspire confidence and put through effective policies."