How the infamous market crash of 1987 could ease your worries about stocks

  • 📰 CNBC
  • ⏱ Reading Time:
  • 36 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 72%

Business News News

Business Business Latest News,Business Business Headlines

How the infamous market crash of 1987 could ease your worries about stocks (via CNBCMakeIt)

, a continuing pandemic and a land war in Europe. Stocks appear to have been making a comeback of late as some market watchers believe inflation may have peaked., with the current uptick representing a brief respite before a more painful recession hits in 2023.Remember 1987? Investors who were around at the time definitely do. On Oct. 19 of that year, the Dow Jones Industrial Average fell 22.6% — the largest one-day drop in that index's history. The day came to be known as Black Monday.

In light of that fact, I recommend the following exercise: Type "S&P 500" into Google. When the chart comes up, select "Max." Now find 1987. The historical upward trajectory of the stock market has reduced it to a tiny blip on your screen, and that's the point all the market experts who tell youIf the market continues to behave as it always has, whatever your portfolio is doing today, tomorrow or next year ultimately won't matter much in the decades that you're likely to be investing.

As long as you're investing consistently in a broadly diversified portfolio of stocks, any drama in your portfolio will eventually matter as little as it did in 1987.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

MakeIt “GREED IS GOOD”

MakeIt One of the realest and greatest movies ever made

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in BUSİNESS

Business Business Latest News, Business Business Headlines