I've had several clients and friends affected by Hurricane Helene, and it's just heartbreaking. My wife and I can't watch the news anymore. If there's anything I can do for anyone, please let me know.
The barometric pressure changes are really hard on my wife's headaches. Luckily, with the new medications, we were able to get by okay without too much trouble. We just always need to be aware of coming storms and prepare for her headaches.
Great news! Senay made the University of Florida pickleball club team. It's becoming a popular sport at universities as well. This club is top ten in the nation, and Senay will be traveling around the country to take on the country's best student-athletes. We are so excited and proud of her. If she puts her mind to something, there is nothing you can do to stop her. A great quality to have!
Her apartment lost power during the storm and she said it was a great opportunity to hang out and bond with her new friends. Good thing she had some candles.
"If you think things can’t get worse, it’s probably only because you lack sufficient imagination."
— Murphy’s Law
Does the world seem a little crazier than usual right now? Throughout my entire career, I've often reassured my clients by saying, "I understand that everything seems chaotic, but if you were to go back in time, you'd probably realize that things were always crazy in their own way. It's all about perspective." However, I'm changing my tune this time. Even I had to admit things truly do seem exceptionally crazy right now.
But this is not the first time we have experienced "exceptionally crazy." Lest we forget, half a century ago were doing nuclear drills and hiding under desks.
Here are eleven examples of times when the world seemed especially chaotic or volatile, yet the stock market continued to perform well or remain resilient.
1. World War I (1914–1918):
The stock market was initially closed for several months following the outbreak of World War I to prevent panic selling. When the market reopened in December 1914, it rebounded quickly.
By the end of 1915, the Dow Jones had gained 81%, its biggest annual percentage gain in history. That just makes no sense. The stock market is not logical.
2. Korean War (1950–1953):
Between 1950 and 1953, the S&P 500 rose 59%.
3. Cuban Missile Crisis in October 1962:
The S&P was up 5.8% on the year.
4. The assassination of President John F. Kennedy on November 22, 1963.
The S&P 500 closed the year with a 17% gain
5. Vietnam War (1965–1973):
From 1965 to 1968, the S&P 500 gained over 50%, despite increasing U.S. involvement in Vietnam and domestic unrest.
6. Watergate Scandal (1972–1974):
The market did experience turbulence during this political scandal. Still, after Nixon’s resignation in August 1974, the S&P 500 had a 37.2% increase in 1975.
7. Iran Hostage Crisis (1979–1981):
Despite the political turmoil and energy concerns caused by the Iranian revolution and the hostage situation, the S&P 500 was up 25.8% in 1980.
8. Chernobyl Disaster (1986):
Following the catastrophic nuclear accident in the Soviet Union, global markets experienced volatility. Still, the S&P 500 ended 1986 up 14.6%.
9. Gulf War (1990–1991):
Despite the initial drop in anticipation of the war, the S&P 500 rose 26.3% in 1991.
10. Iraq War (2003–2004):
The lead-up to and beginning of the Iraq War caused uncertainty in global markets. However, the U.S. stock market performed well, with the S&P 500 up 26.4% in 2003.
11. COVID-19 Pandemic (2020):
During the initial panic, the S&P 500 fell by 34% in March 2020, but it rebounded rapidly and ended the year up 16.3%.
Despite the world seemingly teetering on the edge of chaos time and time again, the stock market has demonstrated remarkable resilience. Each of these moments felt like the "end of the world" at the time, yet markets adapted and ultimately thrived. So, while things may seem more unpredictable than ever, keep in mind that unpredictability is nothing new—
Be Blessed,
Dave