Financial tip of the day.com - FREEDOM THROUGH FINANCE
Social Sites
  • Financial Tip Of The Day
  • Books
  • Websites
  • Contact Us
  • Disclosure

Some fresh perspective on market crashes...

20/10/2014

0 Comments

 
Editor: Crass Cash
Picture
Warren Buffett used to go to the library when he was a young investor and read newspaper articles from the time of when there was great market turbulence like the 1907, 1929 crash and then the following decade.  He did this to get "real life" history.  In other words he wanted to see what people were thinking at the time rather than after.  This is very important because when you're in the middle of an intense situation and then your recollection afterwards could be very different.  Historians struggle with this all the time. Hindsight is not 20/20.  

With that said read about the 27th anniversary of the stock market crash of 1987.  To give you some perspective it would be like the S&P 500 dropping 452 points in one day or the Dow Jones dropping over 4,000 points in one day!  Imagine that!  Wouldn't that be wonderful??  Think of all the bargains to choose from! 

http://blogs.wsj.com/moneybeat/2014/10/20/the-1987-crash-and-a-dose-of-perspective/

What we're experiencing right now is just the tip of the iceberg or nothing at all.  It's like the first kiss on your way to losing your virginity.  Seems like a big deal at the time, but in retrospect, it wasn't much at all.  
0 Comments



Leave a Reply.

    Author

    This website was created due to the atrociously misguided financial advice that I've heard over the decades.  Financial freedom is not intellectually strenuous, but it takes discipline. 

    RSS Feed

    Categories

    All
    BHAG UPDATE
    College Savings
    College Savings
    Credit
    Economics
    Estate Planning
    Estate Planning
    Financial Planning
    Financial Planning
    Insurance
    Investing
    INVESTMENT JOURNAL
    Mistakes
    Net Worth Update
    Retirement
    Tax
    Thrift

    Archives

    October 2017
    August 2017
    May 2017
    April 2017
    February 2017
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    January 2011

Powered by Create your own unique website with customizable templates.