Footsteps of the Bull.

 

Business Times----19 September 2001

 

How the Dow has reacted to crisis events over the years

                                   

EVENT

REACTION

PERCENTAGE CHANGE IN DOW JONES

(Day/Month/Year)

Between

reaction

Dates

Trading days after reaction Dates

 

Days

22

63

126

Fall of France

9/5/40-22/6/40

44

-17.1

-0.5

8.4

7.0

Attack on Pearl Harbour

6/12/41-10/12/41

4

-6.4

3.8

-2.9

-9.6

Truman’s upset victory

2/11/48-10/11/48

8

-4.9

1.6

3.5

1.9

Korean War

23/6/50-13/7/50

20

-12.0

9.1

15.3

19.2

Eisenhower’s heart attack

23/9/55-26/9/55

3

-6.5

0.0

6.6

11.7

Sputnik

3/10/57-22/10/57

19

-9.9

5.5

6.7

7.2

Cuban missile crisis

19/10/62-27/10/62

8

1.1

12.1

17.1

24.2

JFK assassination

21/11/63-22/11/63

1

-2.9

7.2

12.4

15.1

US bombs Cambodia

29/4/70-26/5/70

28

-14.4

9.9

20.3

20.7

Kent State shootings

4/5/70-14/5/70

10

-4.2

0.4

3.8

13.5

Arab oil embargo

18/10/73-5/12/73

18

-17.9

9.3

10.2

7.2

Nixon resigns

9/8/74-29/8/74

20

-15.5

-7.9

-5.7

12.5

USSR invades Afghanistan

24/12/79-3/1/80

10

-2.2

6.7

-4.0

6.8

Hunt silver crisis

13/2/80-27/3/80

42

-15.9

6.7

16.2

25.8

Falk Islands War

1/4/82-7/5/82

37

4.3

-8.5

-9.8

20.8

US invades Grenada

24/10/83-7/11/83

14

-2.7

3.9

-2.8

-3.2

US bombs Libya

15/4/86-21/4/86

6

2.6

-4.3

-4.1

-1.0

Financial panic 1987

2/10/87-19/10/87

17

-34.2

11.5

11.4

15.0

Invasion of Panama

15/1289-20/12/89

5

-1.9

-2.7

0.3

8.0

Gulf War ultimatum

24/1290-16/1/91

23

-4.3

17.0

19.8

18.7

Gorbachev coup

16/8/91-19/8/91

3

-2.4

4.4

1.6

11.3

ERM UK currency crisis

14/9/92-16/10/92

32

-6.0

0.6

3.2

9.2

World Trade Center bombing

26/2/93-27/2/93

1

-0.5

2.4

5.1

8.5

Russia, Mexico, Orange County

11/10/94-20/12/94

40

-2.8

2.7

8.4

20.7

Oklahoma City bombing

19/4/95-20/4/95

1

0.6

3.9

9.7

12.9

Asian stock market crisis

7/10/97-27/10/97

20

-12.4

8.8

10.5

25.0

US Embassy bombings in Africa

7/8/98-10/8/98

3

-0.3

-11.2

4.7

6.5

Russian LTCM crisis

18/8/98-8/10/98

51

-11.3

15.1

24.7

33.7

Mean

 

 

-7.1

3.8

6.8

12.5

Median

 

 

-4.6

3.9

6.7

12.1

Source: Ned Davis Research, Inc

 

 

 


 

 

            Bear Markets for STI-------ST 1/11/08

 

Events

Period

Days STI Stayed Down

ST Index

Decline %

Tan Koon Suan problem

04/03/1985 -–15/04/1986

407

690 to     456.35

34

Asian Financial Crisis

17/02/1997—04/09/1998

564

2129.81 to 805.04

62

Dot.com crisis

03/01/2000—21/09/2001

627

2582.94 to 1241.29

52

SARS

19/03/2002—10/03/2003

356

1808.41 to 1213.82

33

Sub Prime Crisis

11/10/2007 ---31/10/08 (Date)

386

3875.77 to       1794.2

53.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

         

 


 

 

After the Crash of 1987 Part 1    http://www.youtube.com/watch?v=XFn1G2goDQw

 

           

Events

Period

Dow Jones Down

% Down

All regained by

Wall Street Crash

3/9/29 to 13/11/29

381.17 to 198.69

48%

25 years

 

13/8/46 to 9/10/46

204.52 to163.12

20%

4/2/50   3.5 years

 

15/3/62 to 26/6/62

723.53 to 535.75

26%

4/5/63  1 yr

Financial panic 1987

25/8/87 to 19/10/87

2722.42 to 1738.40

36%