...during the Depression it was not the initial crash where people lost the most money. It was in buying stocks that they thought were a bargain before the market tanked harder. (Thanks to ECU ECON Hall of Fame Alumnus Phil McPherson for pointing this out.)
Oh and hey, I forgot to mention, tomorrow is October 1st. So what right? OK. But what month did the biggest stock market and financial calamities happen in 1907, 1929, and 1987. I know, it is psycho-babble like full moons and increases in crime (ask your favorite policeman about this, it happens). And one more for the road...when was the last time we had a consecutive housing bust followed by a stock market meltdown. Right you are, the US in the 1920s and Japan in the 1990s.
Have a nice day.
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Mnth year S&P500 return
Oct 2007 1.48
2006 3.15
2005 -1.17
2004 1.4
2003 5.5
2002 8.6
2001 1.8
2000 -.4
1999 6.25
1998 8.1
The crash on Monday was huge in point terms but is only about 1/3 of the 1987 crash in percentage terms. According to Mark Hulbert of Marketwatch ther have been 16 other occasions since the advent of the Dow (1896)that the Dow HAS Had a percentage loss that was greater than Monday's. This works out to be about every seven years. And how long has it been since the last big correction? How about 7 years almost to the day since Sept 17, 2001.
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