Mr. Money - Know' s
By: Dana Goldfarb
Financial Writer
dana@biznetonline.com

Reasons  Not  To Invest In The Stock Market

My guess is that you're uneasy about investing in the stock market right now, with Y2K  coming .  But why should it be Y2K that bothers you?  Why not August?  Heck, six out of  the last 12 Augusts have been pretty crummy.  And there have been a lot of other months, and even years, that have been pretty crummy; and for good reasons, too.  In fact, I'd like to share some of them with you right now.

On January 1, 1928, the Dow Jones Industrial Average was at 202.4.

1928  Herbert Hoover elected president                      1929  Stock market crashes                                     

1930  Bank of United States fails                                    

1931  European currency system collapses                              

1932  Unemployment reaches 24% !                      

1933  FDR closes all banks                                              

1934  Depression (from 1930-39)                                  

1935  Spanish Civil War                                                    

1936  Dust storms sweep the Midwest                               

1937  Strikes close 15 General Motors plants      

1938  Europe positioning for war                                    

1939  World War II starts                                                 

1940  France falls                                                               

bankruptcy

1941  U.S. enters the War                                                 

1942  All non-essential building is halted                

1943  Race riots; food rationing                                      

1944  Consumer goods shortages                                 

1945  Post-war recession is predicted                              

1946  Steel and coal workers strike                                

1947  Cold War begins                                                   

1948  Berlin blockade                                                       

1949  Russia explodes A-bomb                                

1950  Korean War begins (1950-53)                               

1951  Excess Profits Tax                                                 

1952  U.S. seizes  steel mills                                           

1953  Russia explodes H-bomb                                

1954  McCarthyism                                                       

1955  AFL and CIO merge                                            

1956  Egypt seizes Suez Canal                                

1957  Russia launches Sputnik                                

1958  Marines sent to Lebanon; recession at home               

1959  Steelworker strike; Castro takes over Cuba  

1960  Castro seizes U.S. oil refineries                               

1961  Berlin Wall erected                                                  

1962  Cuban missile crisis                                               

1963  President Kennedy assassinated                        

1964  Vietnam War (1964-75)

1965  Race riot in L.A.; civil rights marches        

1966  Vietnam War escalates

1967  Race riots in Newark and Detroit

1968   Robert Kennedy, Martin Luther King Jr

            assassinated, USS Pueblo seized

1969  Anti-Vietnam demonstrations reach peak

1970  Vietnam War spreads; Cambodia invaded

1971  Wage price freeze

1972  Largest trade deficit ever;  Watergate

1973  Energy crisis;  recession begins

1974  Nixon resigns 

1975  Unclear economic prospects; S. Vietnam falls

1976  New York City on verge of

1977  Market slumps;  Elvis dies (we think!)

1978  Panama Canal to be turned over to Panama at

           end of century

1979  Oil prices skyrocket; Iran hostage crisis begins

1980  All-time prime rate high of over 20%

1981  Reagan shot; air traffic controller strike

1982  Worst recession in 40 years

1983  U.S. Marine barracks bombed in Beirut

1984  Russia boycotts L.A. Summer Olympics

1985  Economic growth slows

1986  Insider trading scandal breaks

1987  Black Monday, Dow drops 508 points

1988  Worst drought in 50 years

1989  Junk bond market collapses

1990  Kuwait invaded

1991  Persian Gulf War

1992  L.A. race riots

1993  Floods hit Midwest

1994  Fed raises interest rates six times

1995  Oklahoma City bombing

1996  U.S. government shutdown

1997  Asian markets collapse

1998  Presidential body parts exposed

1999  Kosovo conflict

 

 

On May 3, 1999, the Dow Jones Industrial Average closed at 11,014.

 

I'd stay out of the market if I were you.


Dana Goldfarb is a broker for Sutro & Company In Woodland Hills Ca.
And Can Be Reached At
(818) 313-8700

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