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Pearl Harbor (12/7/1941)
Over the next five months, the market lost 20%

A little over a year later, the market had returned to its original value Assassination of President John F. Kennedy (11/22/1963)

The market declined by 3% on the day of the assassination

The next day, the market had recovered its loss, and gained an additional 1.5% Watts Riots
(8/11/65 - 8/17/65)

The market did not decline during or after the riots Martin Luther King assassination (4/4/1968)

There was a decline of 0.8% the day after the assassination
The market recovered within one day Resignation of President Nixon (8/8/1974)

There was a market decline of 27% over the next three months
In a little over eight months, the market had recovered its entire value The 1987 stock market crash (10/19/1987)

The market lost 22.6 % of its total value.
The market continued to decline for 2 months.
Within two years, the market had returned to its original value. World Trade Center bombing (2/26/1993)

The market declined for one day, losing less than 1/2 of 1%
Within two days, the market had returned to its original value. Oklahoma City bombing (4/19/1995)

The market did not lose ground; in fact it went up the next day Event9 "The only thing we have to fear is fear itself."

Those words, spoken by President Franklin Delano Roosevelt almost seventy years ago, are as true today as they were then. In times of turmoil, it is important not to panic. When world-changing events rock the headlines, the stock market often rocks in response. After the recent tragedies in New York and Washington, world stock markets were shaken. Near-term volatility in the American stock market is to be expected. So while we mourn our nation's loss, it is important that we take steps to ensure that the losses are not compounded.
            For more investing tips, click on the button. Don't create real losses for yourself

There's an old saying in the investing community-"until you sell, you haven't lost money." This means that there's a big difference between money lost on paper and money lost out of your pocket. Simply put, until you actually sell your shares at a lower price than you bought them for, you have not lost real money. And if you do sell your shares at a lower price than you bought them for, you lose more than real money-you lose the opportunity to gain that money back. Trust your strategy

When you joined your plan, you created an asset allocation strategy. The strategy that is right for you is based on the amount of time you have until retirement, your risk tolerance,and your financial goals. Asset allocation accounts for over 90% of investment returns , and is more important than the movement of individual investment types. The stock market will go up and down — that's a fact of investing. A well defined asset allocation gives you the peace of mind that ups and downs are just part of your strategy. Markets have always rebounded

Many people may be tempted to move their money out of the stock market during times of uncertainty. But over the long run, despite short-term volatility, markets have always rebounded, even after significant losses, to return an average of about 8%. After the big stock market crash of 1929, it took over 20 years for the market to regain the amount it lost. But since the 1960s, recovery periods have been much quicker-typically within about five years. The largest crash in recent history was in October of 1987-but by the beginning of the 1990s, the stock market had regained all the value it had lost. World events have little long-term impact

Even significant world events and periods of social and political turmoil don't move the stock market as much as you might expect. While major events might arguably precipitate short-term drops in the stock market, the long-term effects are largely negligible. Click on the icons on the chart below to view stock market activity during significant historical events including the Oklahoma City bombing, the 1993 World Trade Center bombing, Pearl Harbor, the assassination of President John F. Kennedy, the Watts Riots, the Martin Luther King assassination, and the resignation of President Nixon. The broader impact of the American investor

Here are a couple of important facts to consider: The money in qualified plans-such as 401(k), 403(b) and 457 plans-comprised 35% of all mutual fund assets in the U.S. in 2000. Three-quarters of all money in 401(k) accounts is invested in stocks. These facts add up to one meaningful conclusion: individual investors carry a lot of weight in today's economic markets. It means that the decisions that each individual investor makes about his or her investments are more important now than at any time in recent history. Moving money unnecessarily, in response to external factors, can mean the difference between maintaining the strength of the market at this vital time and dealing the American economy another blow at a time when it can least afford it. What can I do today?

If you have many years until retirement,
Consider the market's history as you make decisions. Excluding the 1930s, there has never been a decade in which the stock market did not close higher than it began. Remember that moving your money at a low point may mean locking in substantial real losses, as well as undermining the chance for your money to recover value. Finally, look at the big picture. Making smart choices with your money during these difficult times is one thing you can do to benefit the nation as a whole, as you take your place among the millions of small investors who help keep the market strong.

If you plan to retire within the next five years
A short-term market loss can have a meaningful impact on your retirement plans. But remember, even after you retire you probably won't need all your money at once. While you may need to move some of your money into more conservative investments for your short-term income needs after retirement, consider keeping a portion of your money invested more aggressively. This can help you take advantage of the stock market's potential for growth. When moving money, consider doing so slowly. Moving large amounts of money all at once may expose you to unnecessary risk-it's often better to move money out of your stock investments a little at a time. "This great Nation will endure . . ."

Unquestionably, the recent acts of terrorism in New York and Washington will have a huge impact on American history. But America's future is yet unwritten. In many ways, it is the action of each individual American that will determine whether those responsible for these terrible acts succeed or ultimately fail. If these acts, and the fear they inspire, cause Americans to make detrimental or ill-considered choices, then the effect of these acts will continue to echo from today into the future. "The only thing we have to fear is fear itself." Those famous words resound in these current dark times. But it is another sentiment expressed by President Roosevelt during that same speech that provides us with a welcome ray of hope: "This great Nation will endure as it has endured, will revive and will prosper."

This chart shows you overall stock market performance over the past century. Click on the icons to view important events in the history of the stock market, and see their effect on stock market performance. " In the "vital statistics" window on the right, you will see the specifics of the event, and movement of the stock market in the time surrounding the event. Data compiled from various sources.