October 19, 1987, will always be a day investors remember with despair. Yes, today is the 30th anniversary of Black Monday where the stock market dropped 22% in one day. Things like this are unforeseen and are very scary, which reinforces the principle of diversification and a long time horizon. If you would have invested October 18, 1987 (the day before the crash) you would have felt devastated, a natural emotion to this type of situation. It’s important to remember though, on Black Monday the Dow Jones dropped to 1,738.74…today the Dow stands just North of 23,000! A pretty healthy return, even after the darkest of days.
Read More about the history of Black Monday, and the differences between October 19th, 1987 and October 19th, 2017.