Today is the 30th anniversary of the stock market crash of October 19, 1987. On that day, the Dow Jones Industrials average fell 508 points in one day at time when the average was only at 2200 to begin with. It would be the equivalent of a 5000 point drop today.
I remember being worried that another Depression was coming, but since I was young and had only a small amount invested back then, I left my 401k in the market.
The good news was that less than six months later, the entire plunge had been recovered ...and more.
What I learned from that experience was never to panic, and certainly never pull out when prices are low. It's a lesson that served me well back in 2008 when the market lost nearly half of its value -- not in one day, both over a relatively short period of a few months. Then too, I did not pull my money out, and I have been rewarded with a near quadruple of the market since the low in early 2009.
The lesson I take from it is this: slow and steady wins the race. if you're in it for the long term, just keep putting money away, and don't fret about the short term movements on Wall Street. Other people want us to sell in a panic ..so they can profit on your losses.
