Seniors Housing Weekly Update-- The Ghosts & Goblins Of October Crashes Of The Past
October 29, 2012
The Ghosts & Goblins Of October Crashes Of The Past
October has always been the month investors fear the most. It all started with the crash of 1929, which saw the market tumble by 13% on October 28 followed by 12% on October 29, which became known as Black Tuesday. While significant, this didn’t quite compare, at least for a daily loss, to Black Monday on October 19, 1987, when the Dow lost 22.6% of its value in one day. That’s the equivalent of a 3,000 point drop today, in just one day. There was some panic last summer after the U.S. Government was downgraded by S&P and the Dow dropped by 630 points. But that was just 5.5%, or gorilla change compared with a 22.6% plunge. Or even the September 28, 2008 drop of 778 points, or 7%, two weeks after Lehman Brothers filed for bankruptcy protection. The ghosts and goblins of Wall Street like to come out in October, but not this year. Happy Halloween.