If you've been watching the news lately, you might've seen something about the economy... but in case you've been living in a cave, things are bad. Are we on the verge of another depression? Should you be scared by what you see happening in the stock market?
If you’ve been watching the news lately, you might’ve seen something about the economy… but in case you’ve been living in a cave, things are bad. Are we on the verge of another depression? Should you be scared by what you see happening in the stock market?
Let’s take a stroll through history… all the way back to the golden years of the late 80’s. It was a simpler time: disco was a fading memory, 3 Men And A Baby was sweeping the box office, and anything seemed possible. Then came October 19th, 1987, the day the stock market saw it’s largest single day decline in history. 22% of the market was wiped out at once.
Fast forward to the 21st century, take a look at the past 100 years as a whole, and you’ll barely notice a decline on the graph; the market simply recovered as it always has after hard times. So in retrospect, October 20th would’ve been a great day to buy. Why? Because unless you believe the US economy is going to hit 0, it will come back up (eventually).
So should you be scared? Without a doubt, we may be facing hard times ahead, but it’s no reason to panic. Just keep things in perspective, always have a level head, and you might even profit in the long run.