On Black Monday October 19th, 1987 the Dow Jones Industrial Average dropped 508 points, from 2247 to 1739, a drop of 22.6%, in a single day. It was the single largest drop in stock market history, percentage-wise. Basically, what’s taken a year to unfold at present happened in a single day. Sounds bad, right? Anybody in the market for the crash must lost a fortune and never fulling recovered, right? Not true. From January 1987 to December 31 2007, the S&P 500 returned 8.97% per year in capital appreciation alone. If you count reinvested dividends, your return would have been much better than that.
What Happens Today Won’t Seem So Important 20 Years From Now
Black Monday probably seemed like the end of the world to those who had money in the market. Many people panicked and moved to cash and some of them even swore off equities forever for being too risky, just like a lot of people are doing today. But now, 21 years later, the events of Bla...
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