How The Financial Markets Reacted To Past Shocks
Dear TradingMarkets Member:
Obviously, the tragic event that occurred on
Tuesday goes far beyond the financial markets. When the markets reopen in the
United States, they will likely be sharply lower.
Needless to say, it is extremely difficult to
compare this event to other past historical events. The following is how the Dow
was impacted shortly after major events.
We are in no way making predictions. There is no
guarantee that the markets will behave in a manner similar to what is shown
here. We simply want provide you with this historical perspective to help you in your
decision making.
| Event | Date | 1 week | 30 days | 90 days | 1 year |
| Attack on Pearl Harbor |
12/07/1941 | +4% | +3.8% | -2.9% | -9.6% |
| Kennedy Assassination |
11/22/1963 | +5.5% | +7.2% | +12.0% | +25.2% |
| 1987 Market Crash |
10/19/1987 | +3.2% | +10.6% | +16% | +23% |
| Iraq Attacks Kuwait |
08/02/1990 | +2.2% | -9.7% | -14% | +3.9% |
Eddie Kwong
Editor-in-Chief