Black Friday - The Stock Market Crash of 2008
This just in:
U.S. stock exchanges are working on a temporary circuit breaker that would stop short selling in a stock following a big drop in price, according to people briefed on the proposal.
It is now official: We are in "Crisis Situation Mode"... Today will go down in history!
Our Associates at Castellum Realty have compiled a wonderful analysis of the History of Wall Street, so we can have a good basis of comparison for today's events.
Is this the bottom? Analysits from cnn, cnbc, fox news all agree: NOT YET. The volume for sellers hasn't reached high enough levels to constitute massive selloff. You will find when looking through the charts below that we are historically in a very similar position to 2001 and 2003, both times being instances where we rebounded to record highs. This is the market folks. It's nothing new. Remember, losses can be written off although i don't suggest selling yet. Also keep in mind that with a democrat in office, your capitol gains taxes will most likely increase from 15% under bush back up to 20%. Always talk to a financial investor before proceeding in either direction.
Here are some historic charts i found showcasing how we've climbed up(and down) the market ladder over the years.
Greatest DJIA Daily Point Losses of All-Time Rank Date Close Net Chg % Chg 1 9/29/2008 10,365.45 –777.68 –6.98 2 9/17/2001 8,920.70 –684.81 –7.13 3 4/14/2000 10,305.78 –617.77 –5.66 4 10/27/1997 7,161.14 –554.26 –7.18 5 8/31/1998 7,539.06 –512.62 –6.37 6 10/19/1987 1,738.74 –508.00 –22.61 7 9/15/2008 10,917.51 –504.48 –4.42 8 9/17/2008 10,609.66 –449.36 –4.06 9 3/12/2001 10,208.25 –436.37 –4.10 10 2/27/2007 12,216.24 –416.02 –3.29 11 6/6/2008 12,209.81 –394.64 –3.13 12 7/19/2002 8,019.26 –390.23 –4.64 13 8/9/2007 13,270.68 –387.18 –2.83 14 9/20/2001 8,376.21 –382.92 –4.37 15 10/12/2000 10,034.58 –379.21 –3.64 16 3/7/2000 9,796.04 –374.47 –3.68 17 9/22/2008 11,015.69 –372.75 –3.27 18 2/5/2008 12,265.13 –370.03 –2.93 19 10/19/2007 13,522.02 –366.94 –2.64 20 11/1/2007 13,567.87 –362.14 –2.60 Greatest DJIA Daily % Losses of All-Time Rank Date Close Net Chg % Chg 1 12/12/1914 54.00 –17.42 –24.39 2 10/19/1987 1,738.74 –508.00 –22.61 3 10/28/1929 260.64 –38.33 –12.82 4 10/29/1929 230.07 –30.57 –11.73 5 11/6/1929 232.13 –25.55 –9.92 6 12/18/1899 58.27 –5.57 –8.72 7 8/12/1932 63.11 –5.79 –8.40 8 3/14/1907 76.23 –6.89 –8.29 9 10/26/1987 1,793.93 –156.83 –8.04 10 7/21/1933 88.71 –7.55 –7.84 11 10/18/1937 125.73 –10.57 –7.75 12 2/1/1917 88.52 –6.91 –7.24 13 10/27/1997 7,161.15 –554.26 –7.18 14 10/5/1932 66.07 –5.09 –7.15 15 9/17/2001 8,920.70 –684.81 –7.13 16 9/24/1931 107.79 –8.20 –7.07 17 7/20/1933 96.26 –7.32 –7.07 18 9/29/2008 10,365.45 –777.68 –6.98 19 7/30/1914 71.42 –5.30 –6.91 20 10/13/1989 2,569.26 –190.58 –6.91
I did some more research and found the following:
3 April 1998
The Dow rises above 9,000 points for first time.4 August 1998
The Dow closes down almost 300 points to 8487.31 - 3rd biggest loss for it's time.31 August 1998
Dow Jones drops to 7,539 - down 512 points or more than 6%.29 March 1999
"Dow 10,000"03 May 1999
"Dow 11,000" - up 225 points to close at 11,014. It takes the Dow just over a month to reach this landmark, the fastest 1,000 points jump.14 January 2000
The Dow peaks at 11,722.98 points.7 March 2000
Dow plunges to the year's low of 9,796.03. In the following months, the index trades in a range of about 10,200 to 11,300 points<script src="http://activerain.com/plugin_assets/active_engine/javascripts/tiny_mce/themes/advanced/langs/en.js?v=307" type="text/javascript"></script>.16 March 2000
In days of high volatility, the Dow Jones posts its biggest single day points gain in history, gaining 499.19 points or just under 5% to close at 10630.6014 April 2000
Dow loses 617.78 points or 5.66% to close at 10305.7714 March 2001
The Dow plunges below the 10,000 points level again, prompted by an economic slowdown in the United States, and hefty losses on global technology markets.11 September 2001
The terrorist attacks on New York halt trading for an unprecedented four days, with the index stuck at 9,605.21 September 2001
Global Economic Fears send the Dow down to 8,236 -5 December 2001
Dow rebounds to over 10,000 -23 July 2002
The scandals - including infamous energy giant Enron and telecoms firm WorldCom - shakes the confidence of investors to the core. The Dow falls back below its post-11 September lows to 7,702 points.
3 October 2006
The Dow Jones industrial average hit a new record ever and closes at 11,727 points. From its 2000 high to its 2002 low, the Dow fell 37.85%. The Nasdaq Composite Index, containing many volatile technology stocks, plunged 77.93%. To push the Dow to a new high, investors have had to overcome serious doubts about inflation and the sustainability of economic growth. The Dow's 61% gain from the closing low of 7286.27 on Oct. 9, 2002, remained below the 85% average total gain for bull markets since 1900.
5 December 2001
Dow 13,000July 19, 2007
Dow 14,00029 September 2008
Largest market drop in history - 777.68 points.8 October 2008
3rd Largest market drop in history_____________________________
When comparing to 9/11 you'll notice it dropped about 1400 points within 10 days before going back up. It then took about 2 1/2 months to regain market share with a gain of 1600 poInts. Note also that the market was down to 7702 points a year later over scandals and more economic fears. Keep this number in mind. It may be an indicator of things to come especially when factoring in the mentality of stock brokers who look towards history to point them in the right direction.
This situation when compared to 2002 has been worsened 100 times over by the media who are comparing the current events to the great depression of 1929. Things are certainly not as bad as they are making it out to be. Notice how none of them have given you these historical numbers? They're in it for the ratings.
As you can see folks we can still afford to lose a great deal before the bottom gets hit. I think a number 7800-8100 may be the bottom (just my opinion ) based on the research above.
THIS MARKET WILL REBOUND AND IT MAY BE SOONER OR LATER. STAY ON GUARD, THIS MAY BE ONE OF THE BEST BUYING OPPORTUNITIES YOU WILL HAVE FOR YEARS TO COME. STAY OPTIMISTIC AND ONCE AGAIN PLEASE DON'T LISTEN (JUST) TO THE NEWS RIGHT NOW.
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