Here are some history we can take a look:
The crash on October 19, 1987, a date that is also known as Black Monday, was the climactic culmination of a market decline that had begun five days before on October 14th. The DJIA fell 3.81 percent on October 14, followed by another 4.60 percent drop on Friday October 16th. But this was nothing compared to what lay ahead when markets opened on the subsequent Monday. On Black Monday, the Dow Jones Industrials Average plummeted 508 points, losing 22.6% of its value in one day. The S&P 500 dropped 20.4%, falling from 282.7 to 225.06
Despite fears of a repeat of the 1930s Depression, the market rallied immediately after the crash, posting a record one-day gain of 102.27 the very next day and 186.64 points on Thursday October 22. It took only two years for the Dow to recover completely; by September of 1989, the market had regained all of the value it had lost in the 1987 crash.
hmm, don't catch the falling knife but you can try your luck after the first few days of market crash? they will recover? maybe can try that.
This was not the first time the market had massive losses followed by a sharp recovery. Here are a few other instances:
Stock Market Crash of 1929 - The Dow falls a total of 23% for October 28 and 29; then makes a sharp 12.84% rebound on the 30th. However, over the next several years the stock market fell dramatically.
October 13 and 16, 1989 - The Dow plunges 190.50 points, or 6.9% on October 13, 1989 then rebounds 88 points on the 16th.
Black Monday, October 19, 1987 and October 20 - The Dow suffers the biggest percentage loss in recorded stock market history on October 19 and initially continues its plunge on the 20th. The markets rally sharply in the afternoon and the Dow posts its first triple-digit gain in its history.
Once market oversold, i think we can go in to catch some cheap fish, the problem is, when is market oversold? Only exp can tell.
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