The Worst Market in 70 Years? (Part 3)

Last week I talked about some of the volatility that we’ve seen in the past, partially in reaction to an S&P comment that this is the most volatile market in 70 years. In researching this piece, I came across a truly frightening market: London in the mid-70’s.

The U.S. crisis in the ‘70s had nothing on its English counterpart. At the heart of the economic problems was a worker’s strike that left many residents of the City of London with power only 3 days a week. Workers had to read reports and work by candle light.

The market declined 70% during that time and saw 40% volatility. Of course, if you bought at the bottom and held on for 10 years, you got a fantastic 16% annual return. Amazingly, though, if you bought at the peak just before the crash, and held on for those same ten years, you got an 8% annual return. And if you consistently put money into the market every month, you got about 12%. Not bad.

The take-away from all this history is to remain calm and stay disciplined. Markets climb a wall of worry. Today’s bear market is tomorrow’s woulda-shoulda buying opportunity.


Douglas R. Tengdin, CFA
Chief Investment Officer
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By | 2014-09-03T17:59:09+00:00 April 7th, 2008|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. –
Leave a comment if you have any questions—I read them all!
– And Follow me on Twitter @GlobalMarketUpd

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