History Of Stock Market

History of stock market. It is important to understand the history in that there have been many, many good times in the market. It is important to understand the history in that there have been many, many...

It is important to understand the history in that there have been many, many good times in the market. For instance, we just came out of one of the greatest bull markets in history from 1982 to the year 2000. There were other periods that were excellent to be in the market like the 1920s, 1940s, 50s, and 1960s. But there have also been bad periods where the markets have dropped precipitously. Usually the market goes down a lot faster than it went up, that's why they get so much press. For instance in October 1987 there was black money and the market lost a considerable percentage. It dropped over 500 points in one day. That scared a lot of people back then and it scared a lot of people out of the market. But for those who hung in there, right after that day they had another big bull market starting in late 1987 and all the way through to 90s where a lot of fortunes were made. So the key lesson to be learned from history is: do not take a microscopic perspective of it. You have to take a long term perspective of the market and be willing to live with the fact that there are times that the market will drop and it is very hard to see those coming until it has happened.

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