Black Monday (October 19, 1987)
Black Monday refers to Monday October 19, 1987, when stock markets around the world crashed, shedding a huge value in a very short time. The crash began in Hong Kong and spread west to Europe, hitting the United States after other markets had already declined by a significant margin. The Dow Jones Industrial Average (DJIA) dropped by 508 points to 1738.74 (22.61%).
The 25th anniversary of October 19, 2012 came and went last Friday. It was the start of a decline, but within normal ranges.
Black Thursday” (October 24, 1929)
The Wall Street Crash of 1929, also known as the Great Crash and the Stock Market Crash of 1929, began October 24, 1929 and was the most devastating stock market crash in the history of the United States when taking into consideration the full extent and duration of its fallout. The crash signaled the beginning of the 10-year Great Depression that affected all Western industrialized countries and did not end in the United States until the onset of American mobilization for World War II at the end of 1941.
Anyone who bought stocks in mid-1929 and held onto them saw most of his or her adult life pass by before getting back to even.
Volatility in Current Times
Given the volatility this decade, including the tech crash of 2000, the 2007 credit crunch, the October 2008 market crash and market capitulation, the March 2009 matching of those lows, and the dramatic swings in the DJIA that now seem to occur with regularity, it takes a strong heart to remain invested.
The financial news today reported that since so many pension funds were underwater, a spreading trend has been to seek alternative investments from the traditional use of the stock market to provide reasonable returns over a long period of time.
What to Invest In
It is true that volatility on the markets seems to be more and more dramatic. The world is changing, as it always does. It is time to remember what so many have repeated time and again, and this truism is more valid today than at any time in history.
“Buy Low. Sell High”
Stocks are low now.
We may or may not have positions in the securities we name. In making an investment decision numerous factors must be considered including portfolio balancing, timing, cash and capital reserves, asset allocation and other factors. Readers are strongly advised to do their own research. Matters discussed contain forward-looking statements that are subject to risks and uncertainties and actual results may differ materially from any future results, performance or achievements expressed or implied.
Views expressed are opinions and not investment advice. Persons investing should retain a licensed professional to guide them and not rely on the opinions expressed herein. This report is neither a solicitation nor a recommendation to buy or sell securities. We are not a registered investment advisor nor a broker-dealer. The information contained herein is based on sources which we believe reliable but is not guaranteed as being accurate or a complete statement or summary of the available data.
