It Was Twenty Years Ago Today
October 19, 1987.
Reagan was president. Gorby was making nice-nice. Buchanan was frothing at the mouth. The Kos/Colbert Kidz had yet to be toilet trained. Democrats on Capitol Hill were acting out like nutcases. Even moreso than usual.
We also witnessed the greatest investment buying opportunity of a lifetime.
The Dow Jones Industrial Average plunged 22 percent.
In one day.
There was panic. Chaos. Liberals in the media reacted like two-year-olds on crank. Moreso than usual.
Within a few years, however, the Dow not only recouped its entire "Black Monday" loss it had doubled in value. Soon thereafter it doubled again. Then again.
Morals of the story:
Buy low.
Sell high.
Not vice-versa.
Money, Money, Money
Despite loud warnings to the contrary from liberal academia and the media -- especially during 2004 {hint, hint} -- the falling dollar hasn't resulted in a flight away from U.S. securities and skyrocketing interest rates. Not at all. In point of fact:
Corporate foreign investment into the United States rose 74 percent to $175.4 billion in 2006, almost double the worldwide growth rate of 38 percent. Britain received $139.5 billion and France received $81.1 billion.
Furthermore the cheap greenback has invigorated our export sector, kept a lid on our trade shortfall, and helped continue net gains in GDP.
Morals of the story:
- Global economics is not a zero-sum game.
- Liberal academia's opinions are as useful as decorum and etiquette at a vomit party.
- The liberal media is as prescient about finance as Anne Boleyn was about her relationships.
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Comments (3)
Hooverville! Soup lines! </... (Below threshold)1. Posted by John F Not Kerry | October 19, 2007 10:49 AM | Score: 0 (0 votes cast)
Hooverville! Soup lines!
1. Posted by John F Not Kerry | October 19, 2007 10:49 AM |
Score: 0 (0 votes cast)
Posted on October 19, 2007 10:49
2. Posted by kim | October 19, 2007 10:51 AM | Score: 0 (0 votes cast)
We have insurance on our shiny new cars, but not our shiny children.
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2. Posted by kim | October 19, 2007 10:51 AM |
Score: 0 (0 votes cast)
Posted on October 19, 2007 10:51
3. Posted by appfunds | October 22, 2007 5:20 AM | Score: 0 (0 votes cast)
According to BusinessWeek there are 310,000 households in China worth at least $1mln net value.
China`s economy is thriving. What if their authorities replace their currency reserves in dollars with euro ?
3. Posted by appfunds | October 22, 2007 5:20 AM |
Score: 0 (0 votes cast)
Posted on October 22, 2007 05:20