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Quote of the Day
“I’d come to understand that nobody really knows what’s going on inside any company, including the president. They only think they know.”
-Alan Greenberg, former CEO of Bear Sterns
Alan Greenberg was the CEO of Bear Sterns from 1978 through 1993, and stayed on as chairman of the board until 2001. Under Greenberg’s leadership, Bear Sterns would become one of New York’s prominent brokerage firms.
His book, Memos From the Chairman, is a collection of memos sent to employees during his tenure that detail his leadership style, and relentless war against costs. (My favorite is his memo requiring Bear Sterns employees to reuse paperclips!)
However, the culture Greenberg created did not last. Bear Sterns would be purchased by JP Morgan on March 16th, 2008 as it struggled to survive during the financial crisis.
November 26th – This Day in Stock Market History
November 26th, 1957 – Stocks fall 2% on word that President Eisenhower has suffered a stroke.
It was not Wall Street’s first time reacting to President Eisenhower’s health problems. On September 26th, 1955, the Dow Jones Industrial Average had its largest point decline in history after news of Eisenhower’s heart attack.
In an attempt to calm the country, and the markets, Eisenhower would give a press conference a few days later. However, his impaired speech would have the opposite effect.
Eisenhower’s heath would be one of the reasons the Dow Jones Industrial Average would finish 1957 down nearly 13%.
November 26th, 1963 – On the first day stock trading resumes since JFK’s assassination, stocks stage a rally as the markets get relief about the consequences of Kennedy’s assassination.
The Dow Jones Industrial Average finishes the day up 32.03 points, up 4.5%, at the time the largest single day point gain in the Dow’s history.
Best November 26th in Dow Jones Industrial Average History
1963 – Up 4.50%, 32.03 points.
Worst November 26th in Dow Jones Industrial Average History
1973 – Down 3.40%, 29.05 points.
Read of the Day
What Happens To Stocks When Disaster Strikes? – Eddy Elfenbein, Crossing Wall Street
“The lesson here is that the stock market will probably leave you plenty of room to make an orderly exit during the worst of times, but the greater investment risk you face in such traumatic times would be to sell stocks in a panic, followed by a failure to re-enter the market in time. If you assume the worst and sell all stocks after a crisis, you could miss the quick recovery as America finds strength in adversity.”