Top 10 Worst Declines and Rebounds Within One Year* | ||
Decline | Rebound | |
Sept. 1929-July 1932 | -89.5% | +172.2% |
Mar. 1937-Mar. 1938 | -50.2% | +63.0% |
Jan. 1973-Dec. 1974 | -46.6% | +56.0% |
Sept. 1939-Apr. 1942 | -41.3% | +48.3% |
Aug. 1987-Oct. 1987 | -41.2% | +35.8% |
Jan. 2000-Oct. 2002 | -38.8% | +36.9% |
Dec. 1968-May 1970 | -36.9% | +52.7% |
Nov. 1961-June 1962 | -29.2% | +39.7% |
Sept. 1976-Feb. 1978 | -27.7% | +22.3% |
Feb. 1966-Oct. 1966 | -26.5% | +29.4% |
Current bear market | ||
Oct. 2007-Nov. 2008 | -47.5%** | |
AVERAGE REBOUND | +55.6% | |
*Based on Dow Jones Industrial Average. Index is property of Dow Jones & Company. **Date of this study is 10/26/08. |
So moral of the story, invest about 25% of your investible surplus regularly in cheap stocks.
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