Who remembers Jan 1995?

Looking at the attached chart, who can recall policy/fiscal/other events that may have caused this breakout?

 

Sorry, screen capture quality is pretty rank. Looking at the Dec '94/Jan'95 period on the S&P 500, significant and lasting break from previous trendline

 

The cause of this was fundamental.

After 40 years the House of representatives went over to the Republicans 1/20/95
The House is important because they control the budget process.

Newt Gringrich and the Contract with America was a plan to balance the budget and more importantly it was a check on the leftist and reckless Clinton Whitehouse to that date.

Of course, in 5 years Gringrich was successful and politically forced Clinton to the middle and together they balanced the budget.

 

Netscape IPO was in Aug 1995 so it isn't that

 

So, on election of a conservative congress, the market anticipates forthcoming reforms. I could see that. I also notice this break is within 1 yr of the boomer generation average demographic age of 40; any revisions to investment (401k, capital gains, etc...) policy expected or passed at this time?

 

sure do.made a ton of money that year.

jan and feb were slow.Sometime in march they took off.one of my best years ever.

http://www.elitetrader.com/vb/showthread.php?s=&postid=2242410#post2242410

 

Guess I should have elaborated: what were the event(s) that kicked off your year of glory?

 

My chart shows a rally in treasury note futures prices and likely a reduction in USA interest rates about year 1995. I have futures charts that show a bull market in grains and cotton during 1995, maybe there was a drought.

 

Mexico financial crisis. $50 billion flowed into Mexico. U.S. banks were no longer in danger of collapsing as a result.

 

Kobe earthquake in Japan, causing Nick Leeson to destroy Barings.
This would have caused the spike in treasuries.