Exxon Mobil Corporation (XOM) & A Year Full of Pops That Couldn’t Save the Dow (.DJI)

The May 6 pop proved short-lived, as others would throughout 1932. By the time the Dow bottomed out in July, it had lost a further 30% from its May 6 close. It’s almost mind-boggling to consider how many times “buy low” only served to lay investors low in the early years of the Great Depression. Despite its seven huge days, 1932 turned into one of the Dow’s worst years: From the beginning to the end of the year, the index shed 23% of its value.

Although a rebound did start in July, it didn’t get very far: Monstrous summertime growth reversed itself once Franklin D. Roosevelt’s candidacy became official as market participants waited for the outcome of one of the most eventful presidential campaigns in modern history. By the time FDR came into office, the Dow had actually fallen below its May 6 closing value. It was only once the Roosevelt administration began its “bold, persistent experimentation,” beginning with a post-inaugural nationwide banking holiday, that the markets at last began to recover.

The article A Year Full of Pops That Couldn’t Save the Dow originally appeared on Fool.com and is written by Alex Planes.

Fool contributor Alex Planes holds no financial position in any company mentioned here. Add him on Google+ or follow him on Twitter @TMFBiggles for more insight into markets, history, and technology.The Motley Fool has no position in any of the stocks mentioned.

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