30yearsofTimeMagazineCovers&TheStockMarket

FromJanuary1978toAugust2008(30slides)

MAGAZINECOVERS&THEMARKET

AtGmeslikethis,thatis,Gmesofdecliningstockmarketspromptedbyaneconomicdownturnand/orrecession,themediaplayasignificantroleincreaGngfearinthemindsofinvestors.Unfortunately,theyaresosuccessfulatdoingthisthatmanyinvestorsaredriventomakethewronginvestmentdecisions(i.e.toinvestmoreconservaGvelyortonotinvestatallunGl“thingsgetbeQer”).Tohighlightthisfact,IwenttotheTIMEmagazinewebsiteandlookedback30yearsforallthecoverstorieswhichillustratedworries(manyofwhichwarnedofdoomandgloom)abouttheeconomyorthestockmarket.Ialsolookedathowmucha$1,000investmentinthestockmarket*onthedaythe“doomandgloom”issuehitthestands,wouldbeworthtenyearslater.IthinkyouwillfindtheresultsveryinteresGng.

*Torepresentthestockmarket,IhavechosentheDowJonesIndustrialAveragewhichisoneofthemajorindexeswhichaimstoapproximatetheperformanceoftheU.S.StockMarket

SUMMARY

Onaverage,hadyouinvested$1,000onthedaytheseissueshitthestand,theinvestmentwouldhavebeen

worth$2,850tenyearslater(almosttriplinginthat?me)