“You know, people talk about this being an uncertain time. You know, all time is uncertain. I mean, it was uncertain back in – in 2007, we just didn’t know it was uncertain. It was – uncertain on September 10th, 2001. It was uncertain on October 18th, 1987. You just didn’t know it.” — Warren Buffett

As a result of market cycles, Stock Market crashes and downtrends are an inherent risk of investing.

The Dutch Tulip Bulb Market Bubble, also known as tulipmania, was one of the most famous market bubbles and crashes of all time. It occurred in Holland during the early to mid-1600s, when speculation drove the value of tulip bulbs to extremes.

The classic word for these kinds of phenomena is BUBBLE ... and ... The Bubble Bursts !

“Oct. 19, 1987 (also famously referred as BLACK MONDAY), marks the largest one-day stock market decline in history. This day Dow fell by 22.6% in a single trading session. To put that into context, a drop of that magnitude would be a nearly 7,000-point slide based on the Dow’s current levels. In 1987, that was about a 508-point drop. Black Monday prompted the development of “trading curbs” aimed to reduce market volatility – rules that allow regulators to halt trading, including electronic trading, in the event of extreme pricing swings.”

Extraordinary popular delusions and the madness of crowds often leads to Stock Market BOOMS and BUSTS ... followed by a "LIFEBOAT OPERATION".

Today, the story of Tulipmania serves as a parable for the pitfalls that excessive greed & speculation in investing can lead to.

But here's the good news —> History is not the market's friend in the near term, but it's a big-time ally of long-term investors.

Despite all the stock market crashes and corrections, if you invested $100 in the S&P 500 at the beginning of 1926, you would have about $1,112,195.58 at the end of 2022, assuming you reinvested all dividends. This is a return on investment of 1,112,095.58%, or 10.08% per year (excluding fees and taxes).