What were the 3 month SP500 losses in 1962 & 1987?

[Lsbcal]

The major declines in 1962 and 1987 stand out in my mind because they were not associated with recessions. I think these were just plain old stock market panics. Of course, there is always something to blame like portfolio insurance in 1987.

So what were the losses for these 2 major declines of the SP500 for
(1) the 3 month period April 1962 through June 1962
(2) the 3 month period September 1987 through November 1987 ?

The winner gets an attaboy (or attagirl). I'll give out the answer after a day or so.

 

[SecondCor521]

Without looking, I think that the market was up in the 1987 period you mention. I know it recovered fairly quickly and I believe recovered completely by the end of that year, but I don't know where it was at the end of November.

1962 was before my time, but I'm going to guess it is a trick question and that the market was up that period as well.

So my official answer to both is "zero".

 

[Turboslacker]

Actually I know that 1987 recovered and shock to most...was positive at same month end WOW. Like a 50% total swing. Now that's a "fun" ride.

 

[Turboslacker]

Wasn't alive in '62 and haven't researched that previously, so have to claim no clue.

Good trivia post!

 

[Lsbcal]

Thanks for the answers so far. The purpose here is to highlight how long and how deep a decline could be. Some posts in this forum seem to show people think this decline to be over quickly. It could indeed be short lived, or it could be longer and a lot deeper then the last 6 trading sessions.

So I really am focused here on those 3 month periods mentioned in the OP. I'll be glad to give the annual 1962 and 1987 returns too.

 

[NW-Bound]

I will not cheat and look up the stock chart.

I was too young in 1962 to remember the stock market, and not even in the US at that time too (though I clearly remember Kennedy's assassination a year later). In 1987, I was working hard, and did not pay much attention to the market although I was aware of margins getting called and people jumping out of high-rise buildings.

 

[Lsbcal]

Here are the declines for those 3 month periods:

-20.6% for April thru June 1962
-29.8% for Sept thru Nov 1987

We don't get the sense of stock market volatility by looking at the annual returns which were:

-8.9% for 1962
+4.9% for 1987

 

[exnavynuke]

I'd love a repeat of 1987 in that case...

 

[Andre1969]

1962 is before my time, but I was always under the impression that the market started to cool a bit in 1957, there was a recession in 1958, a lot of ups and downs after that, and things really didn't get rolling again until 1963.

1958 always sticks in my mind because it was the start of a major shift in the types of cars the American public bought. In 1957, the trend was still longer-lower-wider, and medium-priced cars were very popular. But in 1958, the bottom fell out of that, the medium-priced market dried up, and the only really popular cars were cheaper, smaller ones...and there really weren't that many of those on the market yet. In 1959, the market recovered, but a lot of that was thanks to rising popularity of smaller, cheaper, less profitable cars. IIRC, by 1961 the Rambler brand, which was mostly inexpensive compact cars, was the #3 nameplate in the US.

I know there's a lot more to the overall economy than the auto industry, but I think it did play a much larger role back in those days. There used to be an old saying "What's good for General Motors, is good for America".

 

[Lsbcal]

1962 is before my time, but I was always under the impression that the market started to cool a bit in 1957, there was a recession in 1958, a lot of ups and downs after that, and things really didn't get rolling again until 1963.
...

The recession was in 1957 (starts month 84 on the chart below) but a mild decline for the stock market. See the light blue line for the 1950's and the green line for the 1960's here:

One can also see the 1962 decline (green line, month 26 or so) and the 1987 decline (black line, month 92 or so).

Violent wiggles with happy endings.