A professor could model a university course after the chart of the Dow Jones Industrial Average from 1896 to 2016 you posted here. Look at all the historical events from war to scandal to innovation to political upheaval and look at what the DJIA did in the long run. For as bad as those events are (and some are indeed very bad) the index went up, up, and up. It is impossible to stop capitalism when it has clear rules and guidelines to operate with. The rules help. Look at the recovery time for the Great Depression. It was 25 years and we know there were a lot of what we would consider nefarious behaviors at the time.
The Stagflation of the 70s spoiled markets for 16 years. That's a unique case. Lots of rules in place but I think we now question who followed them and who didn't. This period saw China entering the global economy and sucking inflation out of it with their extremely cheap labor. With inflation gone, the index has seen a bull run from 1986 onward. The crash of 1987 looks like a blip!
It would be interesting to see an updated chart one day showing the COVID crash to see how it scales in.
The quotes from Peter Lynch are cool. In fact, quotes like these are always fun to read. They almost read like cliches because we take them for granted as being true. It's good to be reminded of them!
I'm really surprised there are no comment here! 😳
Fine ... let me be the first then! 😎
A professor could model a university course after the chart of the Dow Jones Industrial Average from 1896 to 2016 you posted here. Look at all the historical events from war to scandal to innovation to political upheaval and look at what the DJIA did in the long run. For as bad as those events are (and some are indeed very bad) the index went up, up, and up. It is impossible to stop capitalism when it has clear rules and guidelines to operate with. The rules help. Look at the recovery time for the Great Depression. It was 25 years and we know there were a lot of what we would consider nefarious behaviors at the time.
The Stagflation of the 70s spoiled markets for 16 years. That's a unique case. Lots of rules in place but I think we now question who followed them and who didn't. This period saw China entering the global economy and sucking inflation out of it with their extremely cheap labor. With inflation gone, the index has seen a bull run from 1986 onward. The crash of 1987 looks like a blip!
It would be interesting to see an updated chart one day showing the COVID crash to see how it scales in.
The quotes from Peter Lynch are cool. In fact, quotes like these are always fun to read. They almost read like cliches because we take them for granted as being true. It's good to be reminded of them!
You're finding these old gems, Bors!
And you're full of wisdom. :)