• Thought of the Day

    Thought of the Day

    2000: It is investor emotions, often inexplicable for individual stocks and for the market alike, that drive the market in the short run, and sometimes for remarkably extended periods. But not forever.

    John C. Bogle, Three Challenges of Investing, speech, October 21, 2001,

Today in Financial History

1999: Shortly after its 103rd birthday, the Dow Jones Industrial Average takes a big slurp from the fountain of youth, as it replaces four stodgy old companies–Chevron (a Dow member since 1984), Goodyear (a member since 1930), Sears (since 1924) and Union Carbide (since 1928) with four hot growth stocks–Home Depot, Intel, Microsoft and SBC Communications.

1990: With big banks in financial trouble, The Washington Post's front page blares: BIG BANKS' WOES MAY FORCE MERGERS; LENDING CUTBACKS COULD AFFECT ECONOMY FOR YEARS, EXPERTS FEAR. Warns Thomas H. Hanley, banking analyst at Salomon Bros., "We have not seen problems like this since the Great Crash [of 1929]." Neal M. Soss, chief economist at First Boston Corp., predicts, "This means sclerosis for the economy for at least 18 months." But, in the end, the money-center banks survive and grow bigger than ever (although several do merge). And, it turns out, the recession ends a mere four months later.

The Washington Post, November 1, 1990, p. A1

1978: Total daily trading volume on the New York Stock Exchange exceeds 50 million for the first time, as 50.45 million shares change hands.

Phyllis S. Pierce, ed., The Dow Jones Averages 1885-1980 (DowJones Irwin, Homewood, IL, 1982), not paginated;"Today in NYSE History," at www.nyse.com/about/TodayInNYSE.html