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Quote of the Day
“Yesterday, December 7, 1941 – a date which will live in infamy…”
-Franklin D. Roosevelt
December 7th – This Day in Stock Market History
December 7th, 1941 – At 7:48am local time, Pearl Harbor is attacked by Japan. The stock market was closed on the day of the attack, but it would open the next day, December 8th, when the Dow Jones Industrial Average would fall 3.49% to 112.53. Broader stock indexes fared worse, falling 4%+.
Stocks would fall another 10% by early 1942 before beginning to climb higher through the war.
Entering World War 2 would lead to huge spending by the United States to build up and maintain its military during World War 2. Increases in spending and the victorious outcome for the U.S. would usher in one of the biggest bull markets in U.S. stock market history. Investors would average a 25% annual compound return over the next few years!
December 7th, 2017 – One day after breaking the $12,000, $13,000, and $14,000 barriers, Bitcoin continues its meteoric rise. On this day, Bitcoin rises over $15,000 and $16,000.
The bubble would continue to inflate for another week and a half, where Bitcoin would top out at just under $20,000:
Best December 7th in Dow Jones Industrial Average History
1973 – Up 2.94%, 23.93 points.
Worst December 7th in Dow Jones Industrial Average History
1904 – Down 4.96%, 2.63 points.
Read(s) of the Day
2 reads today. FDR’s famous “Day in Infamy” speech is below. But first, a great article posted by Jason Zweig. It is another great article exploring how stock markets react to events like 9/11, pearl harbor, and more:
What Can History Teach Us – By Jason Zweig
After the attack on Pearl Harbor, the U.S. would declare war on Japan the next day, and President Franklin D. Roosevelt would give one of the most famous speeches in history:
Franklin D. Roosevelt’s “Day in Infamy” Speech
Yesterday, December 7, 1941 – a date which will live in infamy – the United States of America was suddenly and deliberately attacked by naval and air forces of the Empire of Japan.
The United States was at peace with that nation and, at the solicitation of Japan, was still in conversation with its Government and its Emperor looking toward the maintenance of peace in the Pacific. Indeed, one hour after Japanese air squadrons had commenced bombing in Oahu, the Japanese Ambassador to the United States and his colleague delivered to the Secretary of State a formal reply to a recent American message. While this reply stated that it seemed useless to continue the existing diplomatic negotiations, it contained no threat or hint of war or armed attack.
It will be recorded that the distance of Hawaii from Japan makes it obvious that the attack was deliberately planned many days or even weeks ago. During the intervening time the Japanese Government has deliberately sought to deceive the United States by false statements and expressions of hope for continued peace.
The attack yesterday on the Hawaiian Islands has caused severe damage to American naval and military forces. Very many American lives have been lost. In addition American ships have been reported torpedoed on the high seas between San Francisco and Honolulu.
Yesterday the Japanese Government also launched an attack against Malaya. Last night Japanese forces attacked Hong Kong. Last night Japanese forces attacked Guam. Last night Japanese forces attacked the Philippine Islands. Last night the Japanese attacked Wake Island. This morning the Japanese attacked Midway Island.
Japan has, therefore, undertaken a surprise offensive extending throughout the Pacific area. The facts of yesterday speak for themselves. The people of the United States have already formed their opinions and well understand the implications to the very life and safety of our nation.
As Commander-in-Chief of the Army and Navy, I have directed that all measures be taken for our defense.
Always will we remember the character of the onslaught against us. No matter how long it may take us to overcome this premeditated invasion, the American people in their righteous might will win through to absolute victory.
I believe I interpret the will of the Congress and of the people when I assert that we will not only defend ourselves to the uttermost but will make very certain that this form of treachery shall never endanger us again.
Hostilities exist. There is no blinking at the fact that our people, our territory and our interests are in grave danger.
With confidence in our armed forces – with the unbounded determination of our people – we will gain the inevitable triumph – so help us God.
I ask that the Congress declare that since the unprovoked and dastardly attack by Japan on Sunday, December seventh, a state of war has existed between the United States and the Japanese Empire.”
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