The Market Crash 29 Years On

I tweeted that out the other day. I was guessing at the 14-fold, but I was pretty close. I don’t have the daily return data for the S&P 500 going back that far, so I’m going to use the Vanguard S&P 500 Index Fund (VFINX) as a proxy (chart below).

If you had been unlucky enough to buy at the exact market peak in 1987, you’d be up 11.5 fold now. That’s an annualized gain of 8.8%.

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In retrospect, the greatest one-day crash in Wall Street history looks to be a mere speck.

Posted by on October 19th, 2016 at 9:39 am


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