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Stocks B / Berkshire Hathaway

URL:  http://boards.fool.com/on-september-3-1929-the-dow-jones-industrial-30303886.aspx

Subject:  Re: Still cheap at 4 year high Date:  10/6/2012  10:46 AM
Author:  razorfangius Number:  194704 of 212923

On September 3, 1929, the Dow Jones Industrial Average closed at 381.17.
Two years, ten months, and five days later it closed at 41.22, down 339.95 points or 89.18%.


Exactly. More recently, Iceland dropped about that much in a year because they let their banks fail:

http://www.tradingeconomics.com/iceland/stock-market

The only reason we didn't get an 75+% drop in 2008 was due to intervention. So anyone who is one hundred percent long equities and "comfortable with a 50% drop" is implicitly relying on a government bailout.
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