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Financial
Lessons of History
Here’s a great chart that shows just how volatile
the market can be (read a few examples from
column one). If the investors for whatever reason
decided to pull out during that time of crisis,
they would have lost out on gains that were
shared by those investors who remained steadfast.
Check out the returns for 6 months and one year
later.
| Crisis |
Drop in S&P Industrials |
6 Months Later |
1 Year Later |
| Korean War, June 1950 |
-15% in 5 wks |
+31% |
+36% |
| Sputnik, October 1957 |
-10% in 3 wks |
+8 |
+30 |
| Steel Price Rollback, April 1962 |
-20% in 8 wks |
+11 |
+24 |
| Liquidity Crisis, May 1970 |
-12% in 4 wks |
+16 |
+42 |
| Arab Oil Embargo, October 1973 |
-17% in 9 wks |
-1 |
-28 |
| Nixon Resignation, August 1974 |
-19% in 5 wks |
+30 |
+27 |
| Currency Crisis, October 1978 |
-11% in 3 wks |
+8 |
+16 |
| Hunt Silver Debacle, March 1980 |
-12% in 4 wks |
+26 |
+29 |
| Interest Rate Rise, September 1981 |
-13% in 4 wks |
+8 |
+12 |
| Financial Panic, October 1987 |
-26% in 3 wks |
+7 |
+16 |
| Iraq Invades Kuwait, August 1990 |
-20% in 12 wks |
+28 |
+30 |
| Asian Currency Depreciation, March 1997 |
-10% in 2 wks |
+29 |
+36 |
| Russian Debt Default, May 1998 |
-19% in 7 wks |
+40 |
+40 |
| September 11 U.S. Tragedy, September 2001 |
-12% in 2 wks |
-19 |
-16.8 |
E-mail: invest@barkermoney.com
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