A Lesson from Crashes I've Lived Through

I've lived through four major stock market crashes, and I was invested in three of them.

1973 - 74  -   I wasn't old enough to invest, but I do remember this crash.  This was the same time as oil embargo/gasoline crisis.   The stock market lost 45% of its value.

1987 -  On October 19, 1987, the stock market lost 22.6% of its value in a single day.  This was the first crash during which I was invested.

2000 - 02 -  From the September 11, 2001, the date of the WTC terrorist attacks, the markets declined then recovered in early 2002 and then fell sharply again.  The Dow declined 35% from its peak and the Nasdaq declined 44%.  This happened after the Internet bubble in stocks that occurred up to 2000.

2008 - 09 -  This was the latest stock market crash due to the financial crisis of 2008.   The stock market fell 54% from October 2007 to March 2009.

Subsequently after each crash the stock market rose to new highs.  It's hard to remember that fact while in the depths of a downturn.  But it's one worth remembering since I expect to live through at least three more market crashes.

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This is not financial or investing advice. Please consult a professional advisor.

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