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Here in my office at Money Map Press is a collection of important "stuff" – and by "stuff," I'm talking about the photos, letters, documents, stock certificates, postcards, et al., that I employ in an effort to make my Private Briefing missives stand out from all the other newsletter offerings out there.
And tucked into my files is a special issue of Time magazine. The cover – in bold, black, capital letters – fairly screams, "THE CRASH."
The issue was dated Nov. 2, 1987. And a hefty slice of it was focused on "the crash of '87."
That was the Oct. 19, 1987, sell-off that saw the Dow Jones Industrial Average drop 508 points – at the time a heart-stopping plunge of 22.61%.
I pulled that magazine out of my files after the market closed on Oct. 24. That's the day the Dow plunged 606 points – prompting talk of a "new market reality"… perhaps even a bear market.
I remember the same kind of talk following the "Black Monday" plunge of 1987. Indeed, the Time magazine cover alliteratively warns readers that, following a wild week on Wall Street, "the world is different."
As it turned out, that prognostication was incorrect. The crash of '87 had little lasting impact. So folks who overreacted hurt themselves.
There's no way to tell if the latest sell-off is the start of something worse – or just another "non-event."
The reality is that it doesn't matter.
Let me tell you why…
About the Author
Before he moved into the investment-research business in 2005, William (Bill) Patalon III spent 22 years as an award-winning financial reporter, columnist, and editor. Today he is the Executive Editor and Senior Research Analyst for Money Morning. With his latest project, Private Briefing, Bill takes you "behind the scenes" of his established investment news website for a closer look at the action. Members get all the expert analysis and exclusive scoops he can't publish... and some of the most valuable picks that turn up in Bill's closed-door sessions with editors and experts.