Late last month, financial headlines “celebrated” an infamous anniversary: the 90th anniversary of Black Thursday, the 1929 Crash. Some used the date to muse on how markets today compare to those from nearly a century ago —and whether a crash looms. In our view, the better lesson to draw from such a distant milestone: It is a reminder of stocks' resiliency—and why we think they should likely be a core part of long-term, growth-oriented investors' financial plans.
Because of its severity and magnitude, the 1929 – 1932 bear looms large in market history—and the October crash seems like an obvious inflection point (though US markets' actual pre-Great Depression peak came a month earlier). To capture the mood immediately post-Crash, here is a snippet from The New York Times' coverage:
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