December 6: A Good Day to Buy

From Gary Alexander:

On Friday, December 6, 1974, the U.S. stock market reached its lowest reading during the last 50 years, hitting 577.6 on the Dow. In the 38 years since then, the Dow is up 2,150%, or about 8.7% per year.

On Monday, December 6, 1982, the Dow gained 24.3 points (+2.36%) in one day, rising from 1031 to 1055, capping a 36% gain in less than four months, up from a low of 777 on August 13, 1982. But the stock market, far from peaking, went on to gain another 20% in 1983 and 250% from 1982 to 1987.

On Monday, December 6, 1994, Orange County (California) declared Chapter 9 bankruptcy, the single biggest bankruptcy filing by a U.S. municipality. The Dow fell 60 points (-1.7%) in the next two days to 3685. (P.S. Within five years, the Dow tripled and Orange County went back into the black.)

On Friday, December 6, 1996, the Dow fell 55 points, and 140 points (-2.1%) for the week, from 6522 to 6382, mostly in reaction to Alan Greenspan’s Washington speech, in which he said that financial markets could be exhibiting “irrational exuberance.” (P.S. The Dow rose another 77% in the next three years

Posted by on December 5th, 2012 at 1:10 pm

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.