Did you know? You can go to any day’s “This Day in History” page by simply entering the month and date after www.begintoinvest.com/
For example: www.begintoinvest.com/May-9
Or follow Begin To Invest on Twitter or Facebook for daily posts!
Prefer video? These are posted daily on our YouTube Channel (and embedded below)
Now, ‘This Day in History’ is also available as an Amazon Alexa Flash Briefing!
Quote of the Day
“I think the reason why we got into such idiocy in investment management is best illustrated by a story that I tell about the guy who sold fishing tackle. I asked him, “My God, they’re purple and green. Do fish really take these lures?” And he said, “Mister, I don’t sell to fish.””
-Charlie Munger
February 1st – This Day in Stock Market History
February 1st, 1917 – U.S. stocks fall more than 7% on fears that the U.S. will be forced to enter World War 1.
The U.S. would formally enter the war on April 2nd, 1917.
World War 1 was be responsible for the longest closure of the New York Stock Exchange in history. However that closure actually came before the U.S. became involved in the war. The New York Stock Exchange closed for World War 1 on July 30th, 1914, and remain closed until December 12th, 1914.
The stock market would decline from 1916 through 1917 as investors feared U.S. involvement. Markets would be volatile through 1921, when the roaring 20s would begin, sending the stock market on one of its most dramatic rises in history:
February 1st, 1958 – The United States has its first successful satellite launch with the satellite Explorer 1, finally answering the Soviets in the space race.
Investors had become anxious that the United States had been unable to compete with the Soviets in the space race. After the Soviets launched Sputnik on October 4th, 1957 U.S. stock markets fell more than 10% over the next few weeks.
A couple months later, on December 6th 1957, America’s failed launch of the Vanguard rocket sent stocks about 6% lower again.
It is likely no coincidence that after this event, the U.S. stock market rapidly climbed higher after it had been only going sideways for several years:
February 1st, 2016 – Alphabet (Google’s parent company) briefly passes Apple as the world’s most valuable public company. Google and Apple would trade the honor of the most valuable public company a couple times throughout 2016 before Apple’s stock would take off in early 2017.
Best February 1st in Dow Jones Industrial Average History
1932 – Up 4.52%, 3.44 points.
Worst February 1st in Dow Jones Industrial Average History
1917 – Down 7.24%, 6.91 points.
Read of the Day
The Best of Charlie Munger: 1994 – 2001. 350 pages of quotes, notes and transcripts of Charlie Munger speeches!
<– Go To Previous Day: January 31st 2006 – Ben Bernanke Approved as Next Federal Reserve Charmian
Go To Next Day: February 2nd, 1996 – First Internet Search Engine IPOs (Not Google!) –>
