Sunday, March 27, 2011

History Tends to repeat..

Through the past History..
we notice the Harder they fall, the stronger they Bounce Back..

Let's review some of the important event happened with such scenario:

1973 - Oil Shock Crisis
Dow Jones Industry Stock crash from 1974 - 1975 for 45%
Gain back 300% after 12 years from 1975 - 1987

1987 - Black Friday due to computer trading program
Dow Jones Industry Crash 38% within 2 months in 1987
Gain back 561% after 12 years from 1987 - 2000

1997 - Asia Financial Crisis due to Thailand currency collapse
Straits Time Index crashed 64% from 2000 points to 865 points
Recovered within 12 months, gain more than 500% for the next 10 years

2001 - Dot.Com Bubble Burst
Dow Jones Industry crash 36% from 2001 - 2003
Gain 86% over the next 4 years from 2003 - 2007

2008- Financial crisis due to sub-prime
Dow Jones Indsutry crash 160% from Sep 2008 to lowest Mar 2009.
Gain back more than 176% as of Mar 2011, recover less than 2 years.

As summary, history tend to repeat, and the time of bouncing back getting faster.
if we follow the rules of BUY when Market is PANIC, SELL when Market is Greedy..
that's how our wealth accumulate...Let's see how's investing in STOCK create our Financial Success.

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