ANNANDALE, Va. (MarketWatch) -- Investors younger than their early 40s, and who therefore were not yet out of college 22 years ago, will probably wonder why many old timers are making such a big deal out of the anniversary of the stock-market crash that occurred on this day in 1987 -- which also happened to be a Monday.
In addition, investors who focus on the number of Dow points lost that day -- 508 -- in contrast to the decline in terms of percent, will also wonder what the big deal is all about. After all, in last year's financial meltdown, there were a couple of days in which the Dow lost a lot more than "just" 508 points.
In fact, the Dow's drop on 1987's "Black Monday" was the biggest single-day percentage drop in U.S. stock market history -- nearly 23%, in fact. An equivalent percentage drop at today's loftier market levels would translate into a loss in one trading session of nearly 2,300 Dow points.
No wonder it was so traumatic, and why those who were active in the market that day still remember it so vividly.
Commemorating the 1987 Crash's anniversary is important not just to help market veterans face their trauma, however. It also contains valuable lessons for us as we nurse our still-fresh wounds from the recent financial meltdown.
Perhaps one of the more valuable lessons is that time does heal all wounds.
There will come a time, how many years into the future we don't yet know, when memories of the 2007-2009 bear market will be as distant and forgotten as is the case today for memories of the 1987 crash.
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