The Brains Trust - 2016, page-8054

Once the market figures out there is no immediate economic threat from the Brexit vote, than , most probably, back to normal, is my guess. Has happened before, will happen again.


When it comes to stock market shocks, the assassination of President John F. Kennedy on Nov. 22, 1963, ranks high in Wall Street history.

When news of the assassination spread on television and radio and shock and grief took hold, stock prices took a sharp dive. On the day JFK was shot and killed in Dallas by Lee Harvey Oswald, the benchmark Standard & Poor's 500 plunged 2.8%.

But the negative market reaction was short-lived, as is often the case after scary stock market shocks, such as wars, terror attacks, financial scares and assassinations. The losses were confined to a single day, and the market had regained all of its losses two days later, according to S&P Capital IQ data.

Indeed, the nearly 3% one-day drop on the day the nation's 35th president was assassinated was bigger than first-day plunges following the scare over the Cuban Missile Crisis (-2.7%) on Oct. 10, 1962; the attempted assassination of President Ronald Reagan (-1.2%) on March 30, 1981; the resignation of President Richard Nixon (-1.3%) on Aug. 8, 1974; and the collapse of the hedge fund Long Term Capital Management (-2.2%) on Sept. 23, 1998.
In fact, the 2.8% drop was bigger than the median drop of 2.4% following major shocks dating back to World War II, S&P Capital IQ data show.

In general, the stock market tends to rebound quickly following shocks, once it is determined that the economy won't be irreparably harmed by the event, says Stovall

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http://www.usatoday.com/story/money...market-reaction-to-jfk-assassination/3662171/