Chart of the Week: How have historical events affected the Dow over the past 120 years?
With the stock market last week undergoing its worst week since 2008, it's instructive to take the long view, the very long view. Here's a chart of the Dow Jones over the past 120 with historical events superimposed on the chart.
- What historical event required the longest recovery time for the Dow Jones Industrial Average?
- What historical event caused the last big drop in the stock market (before last week's decline)?
- Find 2-3 historical events on the chart and indicate what impact it had on the Dow Jones.
- What 20-30 year periods saw the sharpest increases in the Dow Jones? Can you tell by looking at the historical events, what led to those being such positive years for the Dow?
- Can you come up with an alternative title for the chart?
Thanks to NGPF super intern Ansh for compiling the last 20+ Charts of the Week in this document.