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Originally Posted by host
Coming to a stock market near you:
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Host on "Black Monday" 10/19/87 the market dropped 23% in one day.
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In financial markets, Black Monday is the name given to Monday, October 19, 1987, when the Dow Jones Industrial Average (DJIA) dropped by 508 points to 1739 (22.6%),[1] and on which similar enormous drops occurred across the world. By the end of October, stock markets in Hong Kong had fallen 45.8%, Australia 41.8%, Spain 31%, the United Kingdom 26.4%, the United States 22.68%, and Canada 22.5%. New Zealand's market was hit especially hard, falling about 60% from its 1987 peak, and taking several years to recover.[2] (The terms Black Monday and Black Tuesday are also applied to October 28 and 29, 1929, which occurred after Black Thursday on October 24, which started the Stock Market Crash of 1929.)
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http://en.wikipedia.org/wiki/Black_Monday_(1987)
So the Dow was 1739, today it is 12,083, almost a 600% increase in 20 years. That is an average annual return of over 10%. If you bought an index representing the Dow on that day you would have almost $7,000 for every $1,000 you invested. If you invested $1,000 in individual companies you would have for example:
GE - $12,000
Johnson and Johnson (JNJ) - $16,000
Mcdonalds (MCD) - $8,000
Caterpillar (CAT) - $8,000
Phillip Morris or Altria (MO) - $16,000
Not including dividends.
Smart money sees this shake up as an excellent buying opportunity. Don't you?