Thirty Years of Reasons
March 11, 2020
Over the past 30 years number of significant negative events have affected the world, yet the markets have always rebounded. I believe the current disruption (Coronavirus) will be no different when viewed in history’s rearview mirror.
Thirty years ago, on January 1, 1990, the S&P 500 closed at 353.40. Today the S&P exceeds 2,750*.
During the 2008-2009 financial panic Warren Buffett famously said, “For 240 years it's been a terrible mistake to bet against America, and now is no time to start.” I believe that sentiment holds true today.
Here are some of the significant events over the past 30 years that could have given pause to investors, causing them to miss out on the market's rise:
Year | Event |
1990 | Persian Gulf War |
1991 | Collapse of the Soviet Union |
1992 | L.A. Riots |
1993 | Bombing of World Trade Center |
1994 | Orange County, CA, files for bankruptcy |
1995 | Oklahoma City bombing |
1996 | US Budget Crisis / Gov’t Shutdown |
1998 | Russian Financial Crisis |
1998 | President Clinton Impeached |
1999 | Y2K |
2000 | Dot-com Bubble Bursts |
2001 | 9/11 Attacks |
2002 | SARS Outbreak |
2003 | N5H1 (Avian Flu) |
2003 | War in Iraq |
2004 | Indian Ocean Tsunami |
2005 | Hurricane Katrina |
2006 | North Korea’s First Nuclear Test |
2007 | Housing Crash |
2008 | Great Recession / Financial Markets Seize |
2009 | Stock Market Collapse |
2009 | Swine Flu |
2011 | Japan Earthquake and Tsunami |
2012 | Hurricane Sandy |
2013 | US Gov’t Shutdown |
2014 | Collapse of Oil Prices |
2014 | Ebola Outbreak |
2015 | Economic Slowdown in China |
2016 | Brexit and President Trump Elected |
2018 | Trade War |
2019 | President Trump Impeached |
It’s always unsettling when a significant event causes your portfolio to temporarily lose value but, as you can see from the chart above, it’s a fairly common occurrence. Often times, the best move is no move at all.
Please stay healthy and contact me if you have any questions or concerns.
Regards,
Dispenza Financial, LLC
Phone (877) 638-6556
Fax (800) 539-0720
Securities and advisory services offered through LPL Financial, a registered investment advisor
Member FINRA/SIPC
* You cannot invest directly in an index