14 Apr 2020
Market Metrics: GFC
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
The 2008 Global Financial Crisis (GFC) began just after the Dow Jones Industrial Average (DJI) closed at an all time high of 14,164 points on 9th October 2007.
The GFC caused the DJI to fall to a 6,547 point low on 9th March 2009 which represented a drop of 53.8%.
An epic fall.
Some investors (more accurately speculators) sold and went to cash and some decided to buy back in after 12 months. Both strategies failed when compared to the investors that just did nothing.
Literally did nothing and remained invested.
It took until 5th March 2013 which is just over 5 years and 4 months for the DJI to reach the 2007 high once again and from there it just went higher and higher.
Click for chart.
Congratulations again to those clients who have taken advantage of this market crash and if you are an Active client that still has questions, please call me on 02 9267 2322.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.