QUESTION/ANSWER. . . When was the following article written?
"NEW ENVIRONMENT
I would therefore like to propose the thesis that as a result of all that has been happening in the economy, the world, and the market during the last decade, we are at least in a different -- if not a new -- era and traditional thinking, the standard approach to the market, is no longer in synchronization with the real
world.
Possibly the market ought to be considered as having gone into a sort of orbit in outer space, in the sense that while we can see how we get where we are, we really have never been here before, and therefore cannot be certain of what happens next."
[posted by permission]
ANSWER:
October 15, 1968
Eight months after The AMEX (which was then
the "speculative" market) FORBADE it's member companies from using their OWN FUNDS to engage in trading in 109 of AMEX's OWN issues! The
following crash (after the '68 presidential election) was the second
worst percentage crash in history (only slightly less bad than the '29
crash). Of the 109 "banned" issues, only 12 were viable companies 3
years later, the rest were OUT OF BUSINESS, either through formal bankruptcy, or more likely, through sheer evaporation! The companies that survived ALL lost more than 90% of their values in the crash -- NEVER to recover to old price levels. Most of these companies lost this 90% in LESS THAN ONE WEEK as the buyers simply vanished. [Remind anyone of anything?] |
