40 years of “Time”
I have always found it interesting that the
more the world changes and “progresses” the
more it stays the same. In the 40 years
represented here by Time Magazine covers,
many of the very concerns that we think of as
unique to today were front page news decades
ago. The May 17, 1971 issue focused on
Egypt’s president Sadat - February 14, 2011’s
cover story again deals with Egypt and recent
revolutionary developments in the Middle East and
North Africa.
point. The “DJIA” is computed from the stock prices of 30 of
the largest and most widely held public U.S. companies. On
Jan 1, 1971 the DJIA stood at 838.92 - On Jan 1, 2011 it had
soared to 11, 577.51 almost thirteen fold.
Here are some other Timely “issues”
ECONOMY - the big headache (1974)
The ENERGY MESS (1979)
UNEMPLOYMENT - the biggest worry (1982)
That MONSTER DEFICIT (1984); The CRASH (1987)
HEALTH CARE MESS (1991); HOW BAD IS IT? (1992)
Is the BOOM OVER? (1998); When Can We Get Out (2005)
To make it more interesting I’ve included a sampling of
SAINTS and SINNERS, political heavyweights and timely
moments in “Time.” Of course you will have to accept that I
wouldn’t miss a chance to acknowledge the only undefeated
NFL team in history - my 1972 Miami Dolphins.
How did the markets react over the long-term? I believe you
will find the results interesting and hopefully reassuring.
I’ve chosen the Dow Jones Industrial Average, as my reference
POSITIVE
NEGATIVE
GROWTH YEAR
RETURN YEAR
TIME AFTER TIME
“The US economy remains almost comatose. The slump
already ranks as the longest period of sustained weakness
since the depression. The economy is staggering under
many structural burdens, as opposed to familiar “cyclical”
problems. The structural faults represent once-in-a-lifetime
dislocations that will take years to work out. Among them:
job drought; the debt hangover; the bank collapse; the real
estate depression; the health care cost explosion and the
runaway federal deficit.”
Sounds like a pretty accurate, albeit negative, commentary
on the current sate of affairs!
It’s actually from Time Magazine Sept 1992…and since
that time the DJIA has surged 275%
December 11, 1972 cover
November 5, 1973 cover
September 9, 1974 cover
December 29, 1975 cover
1972 Largest U.S. trade deficit
Nov 14 DJIA breaks 1000
1973 Energy Crisis
Down 21% during 1973
Dec. 6 - 12-year low of 577
North Vietnamese take Saigon
ends worst bear market since 1930s
35% gain during 1975
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September 20, 1976 cover
September 12, 1977 cover
February 13, 1978 cover
Apple Computers founded
17% gain during 1976
Elvis dies - Star Wars rises
17% loss during 1977
Camp David Peace Treaty
Up 240% in next decade
July 2, 1979 cover
Shah ousted in Iran Revolution
No growth in past 4 1/2 yrs
December 22, 1980 cover
November 30, 1981 cover
Deep Recession - Reagan shot
9% loss during 1981
February 8, 1982 cover
June 27, 1983 cover
Worst recession in 40 years
20% gain during 1982
Korean airliner shot
down by USSR
Interest rates hit all time high
17% gain during 1980
20% gain during 1983
November 2, 1987 cover
March 5, 1984 cover
November 11, 1985 cover
August 25, 1986 cover
Record U.S. deficit
Live Aid concert
Gorbachev becomes Soviet boss
Chernobyl Nuclear Disaster
Jan. 08, 1987 close at 2,002.25,
29% gain during 1980
first close above 2,000.00.
DJIA tripling in next 10yrs
Black Monday crash Oct. 19
Plunges a record 507.99
a drop of 22.6 percent
This is the largest percentage
drop of the DJIA.
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November 21, 1988 cover
CAN-USA Free trade signed
DJIA rose an average of 10%
each year during HW’s term
January 13, 1992 cover
Los Angeles Riots
More than tripling
in next 10 years
June 19, 1989 cover
November 15, 1990 cover
Iraq invades Kuwait
November 21, 1991 cover
DJIA more than quadrupling
in next 10 years
April 17 first close 3,000.00+
March 29, 1993 cover
April 11, 1994 cover
March 13, 1995 cover
1st Trade Centre bombing
13% gain during 1993
800,000 Tutsi killed in Rwanda
DJIA almost tripling
in next 10 years
Quebec narrowly
rejects independence
Feb 23 1st close above 4,000.00
Berlin Wall falls
333% increase in the 80’s
Breakup of USSR
December 2, 1996 cover
February 10, 1997 cover
September 14, 1998 cover
January 19, 1999 cover
Rapper Tupac Shakur
gunned down
Princess Dianna dies in crash
Oct. 27 Falls 554.26
Titanic wins record 11 Oscars
Oct. 16 close 8,416.76, largest
Nunavut created
Mar. 29 close at 10,006.78,
Oct. 14 first close 6,000+
3rd largest dollar loss ever
weekly dollar gain in history
first close above 10,000.00
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Service NOT Service Charges
November 25, 2002 cover
12 countries adopt the “euro”
November 20, 2000 cover
September14,
14,2001
2001cover
September
537 Florida votes give
Bush the White House
Markets
Markets
closed
closed
because
4 trading
of terdays.
rorist attacks
Sep 17inFalls
New684.81
York and
to close
D.C.
at 8,920.70,
8% loss during next decade Washington,
Markets
re-open
largestwill
dollar
lossSeptember
in history,
down 7.13%.
The Roller
Coaster RIDE
December 22, 2003 cover
Aug 14 blackout in USA/Can
July 23 close 7,702.34.
DJIA declined 4,020.64, or
34%, since January 14, 2000
NEXT DAY
July 24 Rises 488.95
Dec 11 first close above 10,000
since May 27, 2002
second largest dollar gain
in history, up 6.35%
July 29 Rises 447.49
third largest dollar gain in
history, up 5.41%.
Oct 9 close at 7,286.27
Now down 38% from Jan 2000
Oct 21 up 17%
in 8 trading sessions!
closes again above 8,500
July 7, 2004 cover
Facebook Launch
DJIA Down 15% during W’s
8 years in White House
September 25, 2006 cover
Enron exes guilty of
conspiracy
Oct 03 close at 11,727.34, to
establish new all time high
January 31, 2005 cover
Katrina hits Gulf coast
June 21, 2010 cover
Deepwater Horizon
Drilling Rig Oil Spill
DJIA + 11% in 2010
July 26, 2010 cover
April 9, 2007 cover
High Flying Loonie
Feb 27 declines 3.29%
Oct 9 DJIA ALL
TIME HIGH close
above 14,100 rising
94% since the low point
5 years ago
The Economy is Back
The Economy Stinks
Nov. 10, 2008 cover
March 30, 2009 cover
March 7, 2011 cover
Beijing Olympics
& Obama Wins
Nov 20 - lowest close
since June 23, 1997
falling 43%
since Jan 1, 2008
& 39% in 1 yr
H1N1 “Swine Flu” Outbreak
Mar 23 Rises 497.48
up 6.84%,
Feb 1, first close above
12,000 since Jun 19, 2008
DJIA has almost
doubled in past 2 years
Mar 8, 2009 - 6,547.05
Mar 8, 2011 - 12,214.38
December 31, 2011 - ?????
Gary Cole Financial Services
5th largest point gain in history
Oct 14 first close above
10,000 since Oct 3, 2008
DJIA up 19% in 2009
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