Though security prices plunged worldwide, losses were moderate in the U. S. Losses were smaller than one percent for the three major market indicators. Nevertheless, the scare caused some to worry that this would be the end of the current record run.
While this could possibly happen, consider some previous catastrophic news that sent prices tumbling temporarily but did not halt the market’s trajectory.
President Eisenhower’s heart attack sent prices into a steep dive –some 6.5 percent. President Kennedy’s assassination resulted in a 2.8 percent drop.
Yet the market absorbed these disquieting events, and then resumed its earlier trajectory.
DJIA -.94 percent
NASDAQ -.72 percent
S&P500 -.74 percent
