The Stock Market Since 9/11

This Sunday will mark the tenth anniversary of 9/11. The stock market shut down for four-straight days, and once we reopened, stocks plunged lower. In fact, markets didn’t reach their bottom for another 18 months.

It’s important to remember that even though most large-caps haven’t done that well over the last ten years, many small-caps have thrived which underscores my point of the importance of good stock-picking.

Here’s a look at the total return of the Wilshire 5000 compared with the total return of the Wilshire 4500 (which is the first index sans the S&P 500).

Since September 10, 2001, the Wilshire 5000 has gained 46.88% while the Wilshire 4500 has gained 105%.58. It was a bumpy road but the people who told investors not to panic after 9/11 were eventually proven right.

David Berman adds:

Although stocks suffered a lot when the market reopened in 2001, the really big moves in the market over the past 10 years have had nothing to do with the attacks.

The financial crisis (the Lehman Brothers collapse on Sept. 15, 2008 seems like an important date to keep in mind; the third anniversary is approaching), deep recession and subsequent recovery with the extraordinary help from central banks seem like far more important factors on stock returns.

Posted by on September 8th, 2011 at 1:21 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.