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Quote of the Day
If you roll dice, you know that the odds are one in six that the dice will come up on a particular side, because you know the dice have six sides. So, you can calculate the risk.
But, in the stock market such comparisons are bull — you don’t even know how many sides the dice have!
– Nassim Telab, author of, The Black Swan: The Impact of the Highly Improbable
This day in history is the anniversary of three days where this risk became very apparent.
October 9th – This Day in Stock Market History
October 9th, 2002 – The NASDAQ closes at 1,114.11, which would become the bottom of the tech bubble collapse. The index is down 78% from its January 2000 high.
In total, the NASDAQ would fall nearly 80% from its peak on March 10th, 2000, and take until April 24th, 2015 to finally close above its 2000 peak level of 5,048.62.
On this day, the Dow Jones Industrial Average would also reach its tech bubble bursting low of 7,286.27 – A decline of 37% from its highs. (The Dow Jones Industrial Average reached its tech bubble peak on January 14th, 2000, when it closed at 11,722.98.)
October 9th, 2007 – The Dow Jones Industrial Average reaches its Pre-Financial Crisis peak of 14,164.53. The index would fall 57% over the next year and a half.
October 9th, 2008 – Exactly one year after the Dow Jones Industrial Average reached an all time high, the index suffers one of its worst days of the financial crisis, falling 7.33%.
The day would also be part of a 7 days stretch that would end up becoming the worst week in stock market history!
The Dow would fall 3.5% on October 6th, 5.1% on October 7th, 2% on October 8th, 7.3% on October 9th and 1.5% on October 10th.
Best October 9th in Dow Jones Industrial Average History
1974 – Up 4.71%, 28.39 points.
Worst October 9th in Dow Jones Industrial Average History
2008 – Down 7.33%, 678.91 points.
Read of the Day
This day in 2002 represents the depths of the tech bubble collapse. Trillions of dollars in wealth had disappeared.
One of my favorite books detailing the rise and fall of the tech bubble is Maggie Mahar’s ‘Bull!’
We have a review of the book here: Bull! A History of the Boom and Bust
Go To Next Day: October 10th, 2008 – The most volatile day in stock market history–>
