Cut and Ruin
By Lance Helfert
Financial booms and busts result from many causes, but our short memories certainly play a key role. Experience and attention to history help investors remain calm during periods of increased market volatility, but also during extended periods of growth or decline. Brandes Investment Partners sent out a fascinating chart to shed light on "the cost of throwing in the towel," as they put it.
The table, which we have recreated below, shows peak-to-trough declines greater than 20% in the Dow Jones Industrial Average since 1960. It also shows the percentage change one and two years after the trough.
Categories: Finance | Economics | Investing
1 comments - Posted by Dean Zatkowsky at 4:25 PM

