The current magnificent drop in the DOW (due to a trading error?) is scary. Is the market so sensitive to events (and fumbling fingers)? Yet, I have faith in the market's ability to recover. Check out the last great crash, in 1987: Notice anything interesting (besides the crash in October)? You'd have made money in 1987, investing in the DOW. Not much (0.6%), but some. And the greatest crash of all, in 1929? Has you bought the DOW 5 years before October 1929, fell asleep and awoke 5 years after the crash ... you'd have made money. See any similarities? I recall (10 years ago?) all the gurus were saying: "The days of double-digit gains are over" P.S. I thought that the DOW and the European stock markets would (by now) be fairly independent. Maybe not, eh? |
Friday, May 7, 2010
CRASH
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