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Here's How Much Investing $1,000 In Morgan Stanley At Great Recession Lows Would Be Worth Today

Wayne Duggan
·2 min read

Despite an extremely volatile, difficult and unpredictable 2020, the S&P 500 has managed to gain significant ground to new all-time highs in 2020. Investors who bought the dip during the sell-off early in the year have been rewarded with a fast market recovery.

Buying the dip was also a great move during the 2008 Great Recession, when the S&P 500 lost roughly 50% of its value, ultimately bottoming at 666.79 on March 9, 2009.

Since the bottom, the SPDR S&P 500 ETF Trust (NYSE: SPY) has generated a total return of 553% over the last 11-plus years.

Related Link: Here's How Much Investing ,000 In Citigroup At Great Recession Lows Would Be Worth Today

Morgan Stanley’s Difficult Decade: One market laggard of the last decade was big bank Morgan Stanley (NYSE: MS).

Morgan Stanley and other U.S. banks survived an extremely precarious situation in 2008 and 2009. Among the big banks that survived, Morgan Stanley experienced one of the most difficult situations.

In fact, Morgan Stanley needed a $9-billion investment from Mitsubishi UFJ Financial Group in September 2008 and $107.3 billion in loans from the U.S. Federal Reserve just to make it through the crisis.

Morgan Stanley then turned around to help get Citigroup Inc (NYSE: C) through the downturn by acquiring Smith Barney in 2009. Morgan Stanley shares hit their low point of the 2010s during the Eurozone debt crisis in 2011, dropping as low as $11.58.

Morgan Stanley shares recovered to as high as $41.04 in mid-2015 before dropping sharply due to a steep decline in trading revenue. Morgan Stanley hit the $50 level for the first time since the crisis in late 2017, rallying as high as $59.38 in early 2018 before pulling back to $36.74 by the end of the year.

Morgan Stanley In 2020, Beyond: Morgan Stanley shares broke out to the upside in late 2019, reaching a 2020 high of $57.57 prior to the COVD-19 sell-off.

Despite the 10-year rally, Morgan Stanley shares have never come close to their pre-financial crisis high of $90.95 back in 2007.

Despite the bumpy road, Morgan Stanley investors who held on through a volatile decade turned a significant profit with the stock now trading at around $51.

In fact, $1,000 worth of Morgan Stanley bought on the day the S&P 500 bottomed in 2009 would be worth about $3,756 today, assuming reinvested dividends.

Looking ahead, analysts expect additional upside for Morgan Stanley in the next 12 months. The average price target among the 23 analysts covering the stock is $60, suggesting 16.7% upside from current levels.

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