- October 1987 (Black Monday Era)
- On October 19, 1987, the NASDAQ dropped significantly (though the Dow’s 22.6% crash is more famous, the NASDAQ fell around 11% that day). The prior day, October 16, saw a drop exceeding 5%. While exact daily NASDAQ data for consecutive 5% drops is less documented than the Dow’s, the aftermath is telling: the market stabilized somewhat in the next month (November 1987 saw volatility but no sustained collapse), and over the next year, it recovered gradually, gaining roughly 15% by late 1988 as the economy avoided a deep recession.
- Dot-Com Crash (2000-2002)
- During the dot-com bubble burst, the NASDAQ saw multiple steep declines. For instance, in April 2000, it experienced sharp drops, including a week with two days of near or exceeding 5% losses (e.g., April 3 and 4, 2000). The month after (May 2000) saw continued volatility with a net decline of about 5-10%, and the year after (April 2001) was deep in bear market territory, down over 50% from its peak as the tech bubble deflated fully.
- 2008 Financial Crisis
- October 2008 was brutal. The NASDAQ dropped 9.14% on September 29, followed by further declines, including days exceeding 5% (e.g., October 7 and 9). The next month (November 2008) saw a partial rebound of about 10% as markets digested the initial panic, but the year after (October 2009) was up significantly—around 40%—as stimulus and recovery took hold post-March 2009 lows.
- 2020 COVID-19 Crash
- March 11, 2020, saw a 4.7% drop, followed by a 9.4% plunge on March 12. While March 11 was just shy of 5%, March 12 and 16 (another 5%+ day) were close enough to consider. The next month (April 2020) s
I have no doubt it will eventually be back - the major difference I see is the self inflicted pain this time around.
Oct 87 - basically the coming of age of computer based trading created a storm - well it probably created the rise, so why not create the fall
dot.com - Enron was putting on a show, every other company started booking sales based on a customer's perceived interest, otherwise they were falling behind.
2008 - well, if you give mortgages to people at 6% so they can afford it, and raise it to 12% in 5 years, eventually there are going to be a bunch of people defaulting. duh - the big short
COVID - the thought was the economy was going to stop. it just shifted. many people were still working, the gvt was giving out money to keep people employed. we figured it out rather quickly
this time - "there are going to be sacrifices to create gain" - i'm even ok with the idea of
I may have a little less, but many will have more. And those many would be the people who are struggling, not in the market - but how are food and gas prices going to come down? A reliable used car? ok, if it doesn't come down, how are we getting more money into the hands of those who need it? higher min wage? more skilled work?
If this is prolonged (well it isn't going to be more than 3 years and 9 months) what happens when AIG starts to have multiple bad quarters?
What if a pension fund collapses?
I was in the market during all of these.
I just put a few shekels in the sp500!
